Renault has joined Vauxhall in announcing New Year price cuts to much of its range just as the VAT rise kicks in.

The French manufacturer is cutting up to £2,000 off a selection of its cars from 4 January, and has also increased the trim levels on offer on some of its models. The price reductions, which unlike Vauxhall's one month offer are permanent, are intended to counter the expected increase in buyer hesitance brought on by the VAT increase.

The larger models are the ones that see the biggest cuts, with the 2.0-litre diesel Grand Espace Dynamique Tom Tom reduced by £2,050, and the price for the Laguna Coupé GT Line TomTom dCi 180 dropped by £1,970. The biggest saving is on the top of the range V6 diesel Laguna Coupe GT Line, which now costs £2,300 less at £28,500.

The 180bhp diesel Laguna Coupe GT Line also gets a sat nav system thrown in for free, something that Renault used to charge £460 for.

Even the recently released two-seater convertible, the Wind, has not escaped the price slashing, with £500 knocked off, meaning it now starts at £15,000, while the Megane hatch and coupe, the Clio, Grand Modus and Grand Scenic are all reduced as well.