CITROEN is offering the Saxo at less than £6,000 on-the-road by removing the free insurance sales incentive in a move inspired by the fleet market. The 'unbundling' of added-value offerings follows on from Vauxhall's 'value pricing' sales campaign in April and was one of the key demands made by the Consumers' Association for manufacturers to cut new car prices, make pricing comparisons easier and give customers a choice of services.

Citroen insists it was not driven by such political issues, but to satisfy buyers concerned solely with price - and also provide a marketing tool. Under the offer, customers can either have insurance or higher specification for the same price on some models, while extending its five-doors for the price of three campaign.

Reduced in price by £1,000, the entry-level 1.0i Saxo First now costs £5,995 on-the-road - less than when the car was originally launched. All three and five-door 1.1i Saxo Forte and Desire models are priced at £7,795. This offer buys either 12 months' free insurance on the Forte or electric front windows, remote central locking and power steering on the Desire. The new prices represent a saving of £1,185 for the five-door Saxo 1.1i Desire.

A Citroen spokesman said: 'Free insurance is less relevant to the fleet market where price is all important and we are finding retail buyers are now more inclined that way.'