Wards Auto has reported on a new study that claims the difference in price on a new car between neighboring countries can be as great as 40% - as is the case with the VW Passat, which is much cheaper in Denmark than in Germany, where the car is actually built.
The differences are mainly because countries charge rates of tax on vehicles differently. But because of the EU’s open border policy this has resulted in buyers going to the cheapest country to buy a new car and avoid the high tax rates at home.
Apparently, car makers are keen on the idea as it will reduce complexity and allow them to sell more cars to the right markets. Now it’s just a matter of getting the governments on board.