RENAULT has promised higher value and lower running costs from its new Megane, due for an autumn launch, with prices starting from £10,500 on-the-road. The manufacturer is planning to introduce better fuel economy and reduced servicing and repair bills for its new Megane range.

The entry-level petrol Megane, the 1.4 Authentique, will cost £10,500 on-the-road, while the entry-level diesel, the 1.5 dCi 80 Authentique, will cost £11,200 on-the-road. Range-topping versions will cost £14,700 (2.0 VVT Privilege) and £15,500 (1.9 dCi 120 Privilege).

Megane brand manager Phil York added that the car will also woo fleet buyers with cheaper insurance ratings and stronger residual values.

He said: 'We're going all-out for Focus. 'Although details are still to be confirmed, parts for our new cars will be cheaper, time for servicing and repair work will be less and security will be higher with deadlocks as standard.' He claimed the pricing and specification policy would take residual values ahead of the Focus to allow Renault to offer 'very competitive' contract hire rates.

'We have listened to fleet customers and are confident we've given them what they want. As a result, we expect user-choosers to account for half the 35,000 examples of the range we intend to sell in Britain next year.'

The Megane will be launched in three and five door hatchback form in October. Cabriolet and Scenic versions will follow next summer and saloon and Sport Tourer models are due to arrive by the end of 2003. A seven-seat Grand Scenic to rival the Vauxhall Zafira will go on sale early in 2004.