The EAOL pointed out on social media that AS Veho Baltics, a company selling Mercedes-Benz vehicles in Estonia, charges much more for them than they cost in Germany.

The association claimed that the German Mercedes-Benz site lists the starting price of an E-Class at €55,370.70, while in Estonia they start at no less than €66,374. Adding a preferred color, leather interior and other extras, meanwhile, pushes the price in Germany up to €63,637.15, but at Veho up to €72,639. Both prices include VAT.

This makes for a €9,000 difference in price, which, over a five-year leasing period, amounts to an additional €150 a month, plus interest.

These price gaps can be significant for other car makes as well.

ERR compared the prices on Škoda's Estonian and German websites, and found that the most affordable version of a Škoda Octavia with a 1.5-liter gasoline engine cost €27,790 in Germany and just €22,400 in Estonia – nearly €5,400 less.

With the diesel-engine Škoda Octavia RS, the difference in price tag is even greater, starting at €37,201 in Estonia and €47,700 in Germany. Prices on both countries' websites are inclusive of VAT.

Veho Baltics CEO Andres Aguraiuja told ERR that the EAOL is comparing incomparable parameters, and that price differences stem from several different factors.

He noted that Estonia's VAT rate is 22 percent, compared to Germany's 19 percent. Likewise, cars sold in Germany come with a two-year warranty, while Estonian prices include a five-year extended warranty.

"The cars sold in Estonian generally have higher standard equipment due to our climate zone and customer preferences," the car dealer said. "For example, winter packages, alarm systems and real-time image display functionality in navigation systems are not included in the basic equipment of cars sold in Germany."

Moreover, Aguraiuja pointed out that logistical costs are already included in the price of Mercedes-Benz vehicles in Estonia; in Germany, these are tacked on as additional charges.

"Once these elements are taken into account, the differences in suggested retail prices are minimal," he said.

The Veho Baltics chief noted that each market region has the right to organize local sales and marketing campaigns with discounts, which is a natural occurrence in commerce. In this specific case, he said, the EAOL compared a product whose price is currently discounted as part of a seasonal promotion by the manufacturer-owned German retail network.

According to Association of Estonian Car Dealers and Service Companies (AMTEL) figures, as of the end of October, a total of 18,500 new passenger cars have been sold in Estonia this year. Škoda was the most popular make, accounting for 3,554 of the cars sold, followed by Toyota with 3,166. Mercedes-Benz vehicles have accounted for 518 sales this year.

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