Peugeot has published details of the impact of the chancellor of the exchequer’s VAT cut on its range of cars.
In a bid to kick-start a struggling economy, Alistair Darling reduced the rate of VAT from 17.5 per cent to 15 per cent in his pre-Budget report, and this means that savings can be made on a range of products.
This includes Peugeot cars, with the full rate cut being passed on to customers by the car manufacturer from Monday, December 1st.
As a result, a five-door Peugeot 207 1.6 HDi 90 will cost £272 less on Monday than it does at present, and £607 will be knocked off the Peugeot 807.
"At first glance, a 2.5 per cent 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," confirmed Ollie Griffin, product and pricing manager at Peugeot UK.
Although savings for Peugeot customers will be significant, Deloitte analysis suggests that the tax break will reduce the average £50 shopping bill by just 530.