EU cuts cost of cars but prices rise in Ireland

NEW EU regulations on the sale of cars, which came into effect yesterday, are expected to increase prices even further in Ireland but reduce them in most other countries.

Changes to the Block Exemption agreement are aimed at breaking the manufacturers’ control over franchised one-brand dealers and at greater competition, with garages being able to sell multiple makes.

The regulations are also aimed at harmonising pre-tax prices across the EU. While motoring bodies say this will see prices fall in many low tax markets, in Ireland they will probably increase.