Skoda dealers are eagerly awaiting the next generation Fabia's arrival in January but still have current model Fabias to sell at a 20% discount.

To drive the run-out of the current model Skoda UK has announced a new 'No VAT' promotion that knocks 20% off the original list price.

The offer is available across the hatch and estate ranges (S 1.2 12V 60PS model excluded) and extends to the recently launched Black Edition models, Monte Carlo models and flagship vRS.

Skoda said this means popular models such as the 1.6 TDI SE have an on-the-road price of £11,910 – a saving of £2,270.

However Skoda dealers are already advertising the same model, pre-registered with delivery miles only, for around £11,000.

Customers opting for the flagship VRS model can save a £2,949 reduction on the original list price, bringing the ‘No VAT’ price to £14,745.83.

Pre-registered VRS models are being advertised for similar prices.

Alasdair Stewart, Skoda UK director, recently told AM its No VAT promotions will not be used on the new generation Fabia, however the car will have a "compelling PCP" finance offer.