Car dealers are on average cutting nearly £2,000 off the price of a new car.
Some new models are being sold at 45% less than their list price as many business suffer in the economic downturn.
A survey by What Car? magazine discovered Ford Fiestas were reduced by 15% from £13,695 to £11,641 while customers could get 10% off a Volkswagen Golf, down from £13,150 to £11,835.
It also rvealed those who shopped around could get £11,500 off a Jaguar XJ, which was priced at £33,764.