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Citroen to pick up VAT bill on October new vehicle sales

Citroen to pick up VAT bill on October new vehicle sales Citroen has confirmed its reputation as the most aggressive deal-maker in the new car market by offering to pay the 17.5 percent value added tax on each sale made this month.

The initiative, which means the new C3 range is now available from just £7326, and the Xsara Picasso for less than £11,000, covers all new Citroens and replaces the promotions that were running during September.

Competitors have expressed their surprise that Citroen was able to offer deeper discounts. One major Japanese manufacturer spokesman said the strategy could damage residuals, and showed a lack of confidence in relatively new models like the C3 and C5.

Citroen, however, was unrepentant. “We are profitable, and our dealers are profitable. And our residuals are competitive for the sector,” says a spokesman.

“This VAT offer gives buyers very clear and straightforward prices right across the range.”

Citroen's sales are up around seven per cent this year, on top of a record increase last year.

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