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Prices have been announced for the Peugeot 508, which arrives in showrooms at the end of April. Replacing the Peugeot 407 saloon and SW estate, the 508 will start at £18,150, with the cheapest diesel costing £19,050.

Alongside a 1.6-litre petrol engine there will be 1.6 and 2-litre diesels. Transmission choices are between five-speed manual, six-speed automated manual (known as EGC) or six-speed auto, although not every gearbox is available with each engine. The choices are:

Petrol (SW estate figures in brackets):

1.6 VTi EGC: 120bhp, 45.6 (44.8)mpg, 144 (145)g/km
1.6 THP manual: 156bhp, 44.1 (43.5mpg), 149 (150)g/km

Diesel:

1.6 HDi manual: 112bhp, 60.1 (58.9)mpg, 124 (125)g/km
1.6 e-HDi EGC: 112bhp, 64.2 (62.8)mpg, 109 (110)g/km
2.0 HDi manual: 140bhp, 58.9 (56.5)mpg, 125 (130)g/km
2.0 HDi auto: 163bhp, 49.6 (49.6)mpg, 149 (149)g/km
2.0 HDi auto: 204bhp, 49.6 (47.8)mpg, 150 (154)g/km

There will be five trim levels; specifications haven't been confirmed but the 1.6 HDi 112 will feature stop and start when the EGC transmission is chosen, while GT models have upgraded front suspension for sharper steering and improved roadholding.

Entry-level cars will be badged Access, followed by SR, Active, Allure and GT. The SW (estate) will cost £1,025 more than an equivalent saloon. Most expensive of all the 508s will be the GT HDi 200 auto, at £28,750 for the saloon and £29,975 for the SW.

Most models are priced between £20,000 and £23,000, with the best seller initially expected to be the 1.6-litre HDi 140 Active, which will cost £20,750 - or £21,975 in SW form.

As demand for more fuel efficient models continues to increase, Peugeot expects the 109g/km e-HDi to take over as the most popular choice, as it's also priced at £20,750, but has cheaper road tax and will be less costly for company car users to run.

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