Discounts granted to new car buyers across Europe have reached an average of €3,200 (£2,350 or 16% of list price), according to a new study by the German consultancy B&D Forecast.

Volkswagen has offered incentives representing over 20% of list price on the purchase of a Golf V and B&D Forecast notes that discount/incentive policies that were initially confined to promoting entry level models and mid-market brands are now being adopted by premium brands including BMW, Audi and Mercedes-Benz.