Ford dealers across the UK have started taking orders for cars at the 15% rate of VAT in anticipation of the rate cut on December 1.
Ford says the new VAT rate will cut approximately £200 off its new Fiesta, £350 off the Focus and £500 off the Mondeo, S-Max and Galaxy.
Roelant de Waard, Ford of Great Britain chairman and managing director, said: "We are pleased that the Government has taken such decisive action, and we hope the tax reduction will encourage more customers to visit their local Ford dealership.
“However, we are slightly disappointed that duty on fuel has been increased at the same time. We won't wait for December 1 and will take orders at the new and reduced VAT rate as of today.”