Most expensive in the EU
Mercedes, Opel, Citroen, Renault the cheapest
Three Volvo models, two SEAT models and one Alfa Romeo model in Cyprus are the most expensive in the EU, with some prices at more than CYP 10,000 above the cheapest EU prices, according to data publshed by the European Commission’s competition division.
The data was gathered by the European Commission by asking 17 European and 8 Japanese manufacturers to supply it with their recommended retail prices as of May 1, 2005 for 89 of the best-selling models.
The Volvo XC90 model, quoted at EUR 51,805 in Cyprus, is the most expensive in the EU, with a retail price that is more than EUR 17,000, or CYP 10,000 above the cheapest price of EUR 34,802 found in Slovenia.
The left-hand drive argument does not apply, because the XC90 retail price in the UK is EUR 35,465, or more than EUR 16,000 below the price in Cyprus, a fact that could lead buyers to import direct from the UK instead.
Cars imported from other EU countries are not subject to the 10% import duty. VAT is payable in Cyprus if it has not already been paid in the other EU member state, as is the Cyprus consumer tax, which is based on engine capacity.
Island status is not an excuse either, since the XC90 price in Malta, also a little island with left-hand drive, is EUR 45,763, ie still over 6k cheaper than in Cyprus.
Volvo models S60 and S80 in Cyprus are also the most expensive in the EU, with a RRP of EUR 36,819 and EUR 39,651 respectively, compared with an average of around EUR 25,000-26,000.
The same rip-off prize is awarded to the SEAT Altea, SEAT Toledo and the Alfa Romeo 166.
The SEAT Altea has an RRP of EUR 13,378, compared with EUR 11,254 in Greece, the cheapest country. The SEAT Toledo is EUR 13,977, compared with just EUR 11,470 in Greece.
The Alfa Romeo 166 is EUR 28,685, compared with just 21,322 in Denmark, the cheapest country.
Mercedes tops the best buy
Evidence suggesting that these prices are not connected with Cyprus’ unpopular consumer tax on cars, which applies to all cars regardless of origin, comes from other large-engine models which win the best buy prize.
Both the Mercedes S350, from the class beloved of stockbrokers, and the Mercedes E220 in Cyprus are the cheapest in the EU.
The S350 retails at EUR 54,068, compared with 60,325 in top-priced Latvia, while the E220 retails at EUR 30,938, compared with 334,611 in Latvia.
The rock-bottom prices on Mercedes may be connected to special offers on offer in May.
Opel Astra in Cyprus is also the lowest in the EU, at EUR 11,039, while the Opel Corsa is the second cheapest in the EU.
Rival Citroen has one model at the cheapest: the bubble-shaped C3 is EUR 9,326, compared with over 11,000 in the UK, while the Citroen C4 is one of the cheapest, at EUR 14,153.
Renault also has one lowest-price model, the Laguna at EUR 14,640, compared with 19,329 in the Czech Republic.
It should be noted that no data on Cyprus were provided for Lancia, Audi, Daihatsu, Ford, Land Rover Mazda, and Saab.
The Commission says that it should also be noted that actual retail prices may differ from recommended list prices, as dealers must be free to propose lower prices and to offer additional financial benefits to customers, depending on the market.
Given the low-looking prices for all models, especially since these are in euros, it looks like retailers in Cyprus could be doing the exact opposite.
