The 2.5% cut in VAT means that Peugeot buyers can now look forward to some genuine savings in the coming months, with the whole saving of up to £608 (for a Peugeot 807) being passed on to customers.

The Chancellor’s decision to reduce VAT to 15% from 1st December, outlined during his Pre-Budget Report earlier this week, translates into a £272 saving on a 5-door Peugeot 207 1.6 S HDi 90.

Ollie Griffin, Product & Pricing Manager at Peugeot UK, said: “At first glance, a 2.5% cut may not seem like a lot, but with the purchase of a product like a new car this saving becomes substantial and represents a real benefit.”