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recent releases from Leicester Shire Development Agency, Business Link for Leicestershire and Business Link Lincolnshire & Rutland | 
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27 September 2002
NEWS RELEASE
INCREASED COMPETITION CUTS CAR PRICES
Cheaper cars could soon be on offer in Leicestershire, according to the Euro Info Centre at Business Link for Leicestershire.
New regulations due to be enforced on October 1 aim to increase competition between dealers and manufacturers and give European consumers lower prices and more choice for sales and servicing.
By making it easier to compare the price of cars and associated services across the EU and reducing the restrictions on distribution methods and dealer locations, the reform will ensure consumers have easier access to after-sales servicing and can take advantage of the lower prices that exist in other European countries.
Currently, manufacturers have full control over dealer selection and brand allocation, which has resulted in a lack of inter-brand and cross-country competition. In addition, restrictive 'location clauses' prevent dealers from setting up secondary outlets.
The new rules allow dealers to sell outside their allocated territory and sell more than one brand from a single showroom. They will also be allowed to set up a secondary sales outlet or delivery point in another part of their own country or another member state, and existing restrictions imposed those purchasing a vehicle on behalf of an overseas consumer will be lifted.
Changes to the laws governing repairs and servicing will give consumers a wider range of choice whilst maintaining the current level of technical expertise, as dealers will be able to choose whether to carry out repairs themselves, or sub-contract them to another authorised member of the manufacturers network.
Sarah Wilson, Euro Info Centre manager, said, "Taken as a whole, the changes pave the way for substantial improvements in competition, resulting in lower priced vehicles and an increased quantity of safe and high quality repair and maintenance services - all of which will be of huge benefit to the consumer."
The European Commission is due to publish a brochure explaining the changes and presenting the rights and obligations for consumers and operators after October 1. For further information contact the Euro Info Centre on 0845 070 0086.
Ends
For further media information
CONTACT Kate Downs on 0116 254 4472
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