While Europe seems to be merging progressively closer to its ambitions of unity, lack of parity is nonetheless manifest in certain areas. Though the rights and obligations of its citizens and member states, both legally and socially have been considerably harmonised, financially the differences are regularly marked.

We all know that it saves to stock up on wines and spirits in France and to ferry them across the seas, that Holland’s diamond market offers some of the best prices in Europe, and that Spain’s diesel is nicely priced in comparison with its neighbours.

But the differences don’t stop there. Car-wise, purchasing a vehicle is not in itself the only source of varying prices within Europe. Financing the purchase will also require some shopping around.

Taking a look at interest rates on motor loans offered by some of the major high street banks within Ireland itself, shines some light on the differences in interest rates on credit facilities proposed to the customer.

On our study it seems that TSB Permanent comes up trumps with the lowest APR available to motorists on a loan basis of E10,000 over a 2-5 year bracket. Their APR of 7.9% would mean a monthly repayment of E338.26 over a period of 36 months or E223.95 over a 60-month period, loan insurance included.

This compares favourably with that quoted by the Bank of Ireland which offers an APR of 9.5% with monthly repayments of E344.42 over 36 months and E230.60 over 60 months.

Higher still on APR is the A.I.B. offering 10.55% with repayments of E359.60 and E237.00 over 36 and 60 months respectively. (They also give free AA car cover and a Wap Phone).

The Ulster Bank’s APR differs depending on the term of the loan so that they offer 9.2% over 36 months with repayments of E343.93 and 8.9% over 60 months with repayments of E228.96.

TSB Permanent is still lowest on APR despite attempts made to compete with it - and it also boasts the lowest monthly repayments available from the lending institutes in our study. This certainly shows that it pays to shop around.

However Irish banks are still lagging behind their European counterparts in reducing the prices of additional extras, such as commission and bank charges. Though attempts have been made by Europe to harmonise loan facilities across borders by introducing identical methods of calculation of APR since the 1st of July, differences can be seen to subsist, not only within Ireland but also as against other European lending institutes. This is because banks are still free to calculate the additional charges to the loan.

So how does this affect Irish prices in comparison with those of our neighbours in Europe? On a comparison of the lowest APR offered in Ireland, under our study, of 7.9%by the TSB Permanent with that of the BNP in France at 8.78%, at around the Irish average APR, we can see that Ireland have not caught up with their neighbours on reducing the cost of the loan to the customer. With a car loan of E10,000, at a rate of 7.9% over 36 months the customer will repay a total of E12,177.36 to the TSB Permanent. Despite the fact that the BNP offers a higher APR over the same period, their customer will only repay E11,338.80, a difference of E838.56 in total.

Similar findings are evident with a second French financial institution, Pre Credit 123 who have been able to cut the price of the loan to the customer with a total repayment of E11,272.97 and an APR of 7.95%, meaning a saving of E904.39 as compared to that of TSB Permanent.

Again French banks pull out all stops to offer the French motorist a competitive interest rate, with the amazingly low APR of 6.59% by Cetelem, with the cost of their loan coming to E1,035.58, again a difference of E1,141.78 to the customer. The reason for this difference can be explained by the competitive charges and loan insurance offered by the French banks and financial institutes, a method of competition within the financial sector which does not seem to be as readily applied in Ireland.

Although the EU have attempted to harmonise lending facilities, the ability of the banks to set charges at different levels to the customer allows for differences in prices to persist, generally to the detriment of the paying customer.

In order to counteract this the EU would have to take a tougher line on lending institutes regarding charges levied on customers. Until this happens the other option for the Irish motorist looking for financial assistance would be to look to their neighbouring countries for both more competitive rates and charges.

So, if we could not only shop around Ireland but also in the future move towards our neighbours in the spirit of full European integration, we might find ourselves financially better off. Credit facilities available over the internet may also spur on further European integration. However, security levels on the net still seem to deter many from taking this line of action when it comes to matters of finance.

Until Irish motorists have the opportunity to avail of a wider choice of European lending facilities - and similar taxes - they’re really no such thing as a single Europe. And they want us to vote yes to Nice.

Yes, if we can have the benefits they enjoy in France.