Car prices in Europe vary a lot between countries. A study looked at prices from 1980 to 1993 and found that Italy and the U.K. had the most expensive cars. The differences were due to factors like exchange rates, costs, and import quotas. In Italy, high prices were because people prefer local brands, while in the U.K., it was because of better features or dealer discounts. The study suggests that joining the European Monetary Union could make prices more stable, but more steps might be needed to make prices more similar across Europe.