Online retailer OneSwoop has clashed with market newcomer MSN Carview, claiming the Microsoft subsidiary is more expensive on 11 out of 14 of the most popular derivatives.

Carview has hit back, saying service not price is the issue.

Microsoft's online service is linked to Pendragon, the UK's biggest motor retailer.

OneSwoop says a Toyota Rav4 2.0 costs £2,001 less than it would via Carview, with an average difference of £750 on the 14 cars.

Tom Buehlmann, OneSwoop marketing director, said that OneSwoop's relationship with dealers throughout Europe would deliver better savings. “UK sourcing is a good way of delivering shorter lead times but Carview's partnership with Pendragon is an incomplete arrangement – the end result being a lack of choice for the consumer,” he said.

John Brewer, MSN Carview managing director, said: “OneSwoop is an importer and a niche operator for people who don't mind waiting for their car to be delivered. Our independent research shows people are fed up with their car taking longer to reach them."

“We don't set the prices. Carview's role is to make the research and buying process as smooth as possible and not just win business on price.”