Two critical reports claim that the motor industry is overestimating the potential impact of the internet on car retailing.

Researchers Mintel says 55% of UK consumers believe they are being ripped off by high new car prices at dealers compared to the mainland, but adds that few consumers would buy online.

Market analyst Datamonitor also cast doubts over the future on many online car retailers.

Michael Wood, Datamonitor automotive eCommerce analyst, said: “More than 50% of the present crop of online car retailers will fail to establish a long term presence in the market. Those that do succeed will either have to cater for the multiple sectors of the car market or become small niche players.”