Toyota has acted swiftly to pass on the benefit of the 2.5 per cent reduction in the standard rate of VAT to its customers. From 1 December the new 15 per cent rate will apply to all new Toyota cars and options. The revised on-the-road vehicle prices also take into account the VAT element in delivery charges and the cost of number plates.

The price of the new iQ is reduced by up to £240, with the model range now starting at £9,295. The order books for iQ are open now, with first deliveries to customers in January.

Within the established Toyota line-up, there are significant savings to be enjoyed, for example on the RAV4 compact SUV, with the added-value XT-R versions now costing from £19,620 for the 2.0 VVT-i manual model – £425 less than the current OTR price.