Last Saturday, one of the most significant events aimed at reducing car prices occurred when the EU scrapped the so-called location clause.
Despite this, Irish car buyers are unlikely to see the lower car prices promised by the EU.
Figures released by the Society of the Irish Motor Industry (SIMI) reveal that motorists are continuing to buy new cars despite the ineffectiveness of the EU's moves to reduce prices.
The figures reveal that car sales over the first nine months of 2005 were up 15 per cent on the same period last year.
The EU initiative meant that from last weekend competing dealers were permitted to open outlets regardless of whether they infringe on another dealer's territory. Until then a restriction - known as the location clause - prohibited such moves.
The scrapping of the clause was the last part of a much larger EU initiative - known as the new Block Exemption - that was designed to lead to cheaper car prices.
The man behind the changes, the then Competition Commissioner, Mario Monti, said at the time: "More competition in car distribution leads to lower prices. By finally tearing down remaining obstacles to cross-border vehicle purchases, consumers will make use of the full potential of the single market for car purchases."
But as BEUC, the European Consumers' Organisation, pointed out, European consumers are still waiting for the full advantages of the new car block exemption.
Its director, Jim Murray, said: "The commission should refrain from saying that the reform has been a success - yet - self-congratulation will hardly do the trick."
And Irish car buyers must wait for the Government to act on Vehicle Registration Tax (VRT) before they see any benefits from the EU initiatives.
As far back as 2002, the European Commissioner for the Internal Market, Fritz Bolkestein, called for countries such as Ireland to gradually reduce and ultimately abolish VRT.
Despite this, the Government has steadfastly refused to act on the issue.
"Ireland should have abolished its excise duty on cars when we joined the Single Market in 1993," said Cyril McHugh of the SIMI.
"Because of the dependence on this revenue at that time, it was decided to introduce VRT to maintain this income flow. However, in the intervening years, VRT returns have more than quadrupled from €196 million in 1993 to €930 million in 2004."
For the first six months of 2005, Irish motorists paid €876 million in VRT - which works out at an average of €6,400 for each new car bought. They also paid almost half as much again in VAT. Although motorists will have to wait for Government action on VRT, there have been some noticeable changes as a result of the EU's initiatives.
At least one main Dublin dealer has already established a new outlet and repair centre in an area that is already being served by an existing franchise dealer selling the same brand.
Cormac Hughes, a south Dublin Ford dealer, built his new premises only one mile away from a competing Ford dealer. He says his move is a clear indication that Irish dealers with the financial and business will are ready to react to the new trading environment. Despite this, the industry here is adamant that there will be minimal disruption to the Irish car sales landscape.
At least one major British retailing group is already looking at Dublin with a view to opening an outlet here.
This interest in the Irish market is something dealers here have to expect says Pearse Flannery from the motor industry consultancy, Pragmatica. "We will see dealer groups come here from abroad, maybe not in the short-term but certainly in the medium term," he said. But as a major Dublin-based new car dealer, Paraic Mooney, explains, Ireland has a limited attraction to foreign dealers. "The investment required to set up in Ireland are huge and the returns are just too small to tempt more dealers in," he said.