Ford will reduce the price of its small and medium size cars by 11 per cent from August 2.
This will mean substantial savings on the current list price of some of the country's best-selling models, including the Fiesta and Focus.
The manufacturer introduced similar reductions on its larger models in April, stating that it wanted to provide customers with greater transparency.
Ford had previously operated a system of using high recommended list prices on the forecourt, but then offering large discounts to potential buyers in the dealership.
As well as appealing to showroom customers, the new initiative is likely to prove attractive to company car drivers as the lower cost will also reduce P11D tax liability.
To find out what kinds of savings are on offer we've compared Ford's current prices (before you begin haggling with the dealer) with those after August 2.
Ford Ka Studio
Current starting price: £9360
After August 2: £7995
Ford Fiesta Studio
Current starting price: £11,645
After August 2: £9,995
Ford Focus Zetec
Current starting price: £18,345
After August 2: £15,545