THE average price of a new car across Europe has increased over the past year by more than 4%, latest research suggests.

In the UK, prices rose by 3.9% but across the continent as a whole price increases ranged from -3.3% in Finland to +11.9% in Poland.

Such a differential highlights the benefits for European fleet executives to investigate the opportunities of buying vehicles in another country where they are cheaper.

However, experts have warned fleets to tread carefully when attempting such a move as many factors need to be taken into consideration.

These include varying vehicle warranties, the cost of bringing the vehicles from one country to another and differing specification levels.

The latest European Index of New Car Prices, covering the 12 months to October this year, has been published by eurocarprice.com in association with PricewaterhouseCoopers.

Charles Seguin, PricewaterhouseCoopers Autofacts retailer capabilities division leader, said: 'The pricing movements show the effect of supply and demand in the overall automotive marketplace.

'With the number of new models being introduced and the competitive nature of the industry, market prices are performing as expected.

'It is too early to tell whether the intent of the changes to Block Exemption regulations of increased retail competition will result in lower prices for consumers. Quite the opposite seems to be occurring.'

Eurocarprice.com also tracks movements in pre-tax prices in the euro currency zone and some other markets.

It found that average pre-tax prices for vehicles in the euro currency countries rose by 3.9% in the 12 months to October.

Pre-tax car prices in the whole of western Europe rose 0.3% in the year to October compared to a fall of 0.1% in the year to September.

Greece has the lowest pre-tax prices for cars, at 14% lower than the average. Switzerland, where pre-tax prices are 14% higher than the euro zone, has the highest relative pre-tax prices.