THE Government has cleared the way for car buyers to pay thousands of pounds less for some models.

Ministers announced they are relaxing the import regulations on cheaper, independently-sold foreign cars - known as "grey imports".

These cars, mainly from Japan and the Far East, can sell for up to 35 per cent less than those bought from franchise dealers.

Present tight limits restrict the numbers of such imports to 50 per model per year.

Trade and Industry Secretary Stephen Byers and Transport Minister John Reid said that this figure would be raised to 1,000 in March 2000 and increased by 1,000 each month until the end of the year 2000, when all limits will be lifted.

"Car buyers could now save thousands of pounds and this is a victory for the consumer," said Mr Byers.

Dr Reid said: "This will increase competition and choice for car buyers and it's good news all round for consumers." Models allowed in under the present regulations are subject to a £165 special vehicle approval test to confirm they comply with European Union safety and emission rules.

The Ministers announced that this test would be tightened to ensure greater safety standards

It is estimated that around 55,000 grey import vehicles will be sold a year once restrictions are lifted.

Companies such as Mitsubishi, Toyota and Mazda have expressed concerns about the safety of grey imports and the lack of specialised servicing of these vehicles.

The Society of Motor Manufacturers and Traders said without strict forms of control, UK consumers could be exposed to increased environmental, safety, security and financial risks.

The decision comes as consumer groups are highlighting the steep prices UK car buyers have to pay compared with their European counterparts. The question of the way cars are supplied and sold in the UK is the subject of a Competition Commission inquiry.

Story date: Wednesday 19 May

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