PEUGEOT has increased the standard specification levels and cut the price of its new 406 by as much as £620 compared to the car's predecessor. The changes provide clear evidence of the deflationary pressures weighing on new vehicle prices in the UK, as manufacturers continue their slow progress towards European price harmonisation.

All new 406s gain a CD player, except for entry-level L models, and all now feature digital 'set and forget' air conditioning with climate control, except the L, LX 1.8 petrol model and LX HDi 90bhp common rail diesel. Prices start at £14,295 on-the-road for the L 1.8 saloon, with a £1,000 supplement for the estate across the range, while the 110bhp HDi commands an £800 premium over the 90bhp HDi.

A new GTX trim, available with the 2.0 and 3.0-litre petrol models and both 90bhp and 110bhp HDi models fits between GLX and Executive, to give the range five trim levels to compete head-to-head with rivals from Ford and Vauxhall. The biggest price reduction is for the 406 Executive 2.0 automatic with digital air conditioning, which now hits the road at £21,100 compared to £21,720 for its predecessor.

Sample 406 saloon prices (add £1,000 for the estate, and £1,250 for the seven-seater family estate): L 1.8 £14,295; L 1.8 with sunroof £14,705, L 1.8 with air conditioning in lieu of sunroof £14,955; L 2.0 HDi 90 £15,200; LX 1.8 with digital air conditioning in lieu of sunroof £15,650; LX 2.0 £15,950; LX 2.0 HDi 90 with digital air conditioning in lieu of sunroof £16,550; LX 2.0 HDi 110 £17,350; GLX 2.0 £17,000; GLX 2.0 HDi 90 £17,600; GLX 2.0 HDi 110 £18,400; GTX 2.0 £18,020; GTX 2.0 HDi 90 £18,620; GTX 2.0 HDi 110 £19,420; GTX 3.0 V6 £20,020; GTX 3.0 V6 auto £21,120; Executive 2.0 £20,000; Executive 2.0 auto £21,100; Executive 2.0 HDi 110 £21,400; V6 3.0 £22,000; V6 3.0 auto £23,100.