Denise Kingsmill, who earned a reputation as a tough interrogator during the Commission's nine-month inquiry, said the Competition Commission new car pricing report offered an “objective, thorough and fair” verdict on the industry.

Ms Kingsmill believed the findings could open the industry to a range of new retail channels. “We want to see a variety of new business models for the way cars are sold, not least using e-commerce,” she said.

Her team concluded consumers were being unfairly penalised which is why they urged the Government to introduce reforms. Sheila McKechnie, Consumers' Association director, said the report confirmed UK consumers were paying over the odds for new cars.

“This is a victory for consumers who supported our campaign over the last 12 months,” she said.