BMW and Mini

The 2.5 per cent reduction affects the whole BMW and Mini range, including £1,055 off the BMW M3 and £500 off the Mini John Cooper Works.

The lowest price of a new BMW 3 Series is £21,020, down from £21, 475, and a standard Mini Cooper is now £11,680, down from £11,925. 

View the complete BMW and Mini price list

Ford

Ford reduced its rate before December 1, which applies to all cars including the new Ford Fiesta, with an estimated saving of £200.

Customers can expect to save around £350 on a £15,000 Ford Focus and £500 on a Ford Mondeo, S-MAX or Galaxy. The 2.5 per cent tax reduction also applies to parts and services.

View our slide show of more great deals:

Skoda

Skoda has gone one step further and scrapped VAT entirely on all its Octavia models, with savings of up to £3,000 new.
Unlike the 2.5 per cent VAT reduction which ends in December 2009, this offer will end at the end of this month.

Read our review of the Skoda Octavia vRS

Nissan

Nissan is offering buyers reduced rates across a range of cars, including savings of £1,436 on the Nissan Micra and £3,592 off the Nissan X-Trail. This sets the new prices at £7,829 and £21,533 respectively.

The 1.4-litre Nissan Note Acenta five-door model is also down to £9,786 from £11,695.

Lexus

The 2.5 per cent VAT decrease will cover all new Lexus cars, including delivery and number plates.

The new Lexus IS 220d SE costs £22,015, down from £23,192 for the previous model – giving buyers a saving of £1,177.

The hybrid Lexus RX 400h drops £768 down to £35,505 for the entry level model.

Mercedes and Smart

Mercedes-Benz UK is implementing the full 2.5 per cent VAT reduction across new Mercedes and Smart cars. This includes £300 off the A150 SE, bringing the price down to £14,064, and £148 off the Smart Fortwo Micro Hybrid Drive, lowering its overall cost to £6,912.

The change covers new car prices, delivery charges, parts, servicing, driving experiences and food and drink served in the Gullwing restaurant and Café 1886 at Mercedes-Benz World in Surrey.

Peugeot

The whole Peugeot range will see price drops ranging from £157 to £608.

Prices range from the £7,387 Peugeot 107 Urban Lite, down from £7,545, and the £28,286 Puegeot 807 Executive, down from £28,895.

A five-door 1.6-litre Peugeot 207 S HDi 90 will save buyers £272, lowering its cost to £12,672.

Vauxhall

The new Vauxhall Insignia has had its price cut by £334, reducing its on-the-road price to £15,600.

Buyers can also get £773 off the VXR8 auto, £150 off the list price of a Vauxhall Agila 1.0i Ecoflex and other savings across the Vauxhall range.

View footage of the Vauxhall Insignia in action:

Toyota

The new 15 per cent rate will apply to all new cars, including delivery.

The new Toyota IQ starts at £9,295, which sees a price reduction of £240 before its release. This price change also affects current pre-orders.

For soft-roading motorists the Toyota RAV4 XT-R has £425 slashed from its list price – bringing it down to £19,620 for the 2-litre VVT-i model.

MG

The MG TF LE500 is now £16,055 – 2.5 per cent less than its previous price.

The LE500 is a sporty roadster which comes with rear parking sensors, leather seats, alloy wheels and air conditioning as standard.

It also features a new interior, revamped exterior styling and updated suspension, drive train and braking systems.

For another ‘deals of the week’ round-up, come back to Auto Trader this weekend.

View our slide show of the latest car deals

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