To work out the percentage reduction, we need to find the difference between the original price and the reduced price, and express that difference as a percentage of the original price:
Original price = £12500
Reduced price = £11625
Difference = £12500 - £11625 = £875
Percentage reduction = (Difference / Original price) x 100%
= (£875 / £12500) x 100%
= 7%
Therefore, the percentage reduction in the price of the car is 7%.