Exchange rates lead to block

George Pitcher ascribes the fact that car prices in the UK are higher than in Europe to block exemption (MW July 15). This is not true, as block exemption exists throughout Europe.

The difference is carried by exchange rates – experts reckon that the real exchange rate is about 75p to the euro, not 65p.

Comparing car prices at this level would remove most of the difference. When the pound was weak in 1995, car prices in the UK were at the bottom of the league.

Of course, there will be individual models in individual countries, which have larger price differences. That’s marketing – choosing the right price for the market conditions.

David Leibling

Head of corporate communications

Lex Service

Bucks

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