The government is to introduce measures designed to reduce UK car prices after a DTI survey showed that UK prices were 10% to 12% higher than in other European countries.
The measures being proposed include:
- requiring suppliers to offer dealers the same discounts they offer to fleet buyers;
- requiring suppliers to provide dealers with regular statements of terms they are prepared to offer which reflect the terms offered to fleet buyers;
- prohibiting suppliers from offering less attractive discounts with contract hire companies if the end use is not a fleet customer;
- prohibiting suppliers from imposing contract terms on dealers which prevent or inhibit dealers from advertising special offer prices;
- prohibiting suppliers from refusing to supply a dealer because of the dealer’s advertised price;
- prohibiting restrictions on the number of cars which a dealer may sell in a given period;
- requiring suppliers to publish information about the number of cars they have pre-registered.
Further consideration is being given to changes in the European Union’s Car Block Exemption Rules which run until September 2002.
[2000]