CITROEN is promising to pay the VAT on all new cars ordered and registered in October, although the company has not lowered its official list prices by 17.5%, so company car drivers will continue to incur a benefit in kind charge based on the full P11d price of the cars.

The new promotion can offer consumers up to £3,500 off the price of a new car, with the range now starting from just £5,795 for the Saxo Forte, whilst the new C3 supermini is available from £7,326. In the showroom during October, the Xsara Picasso begins at less than £11,000 and Citroen's upper medium car, the C5, for a little over £12,500.