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Used cars at Tesco?

Supermarket giant Tesco has sent shockwaves through the secondhand car industry with plans to launch its own used motors website.

By Geraldine Ashton Green
Feb 28, 2011
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Supermarket giant Tesco has sent shockwaves through the secondhand car industry with plans to launch its own used motors website.

If the rumours are true Tesco will look to mark itself apart from the negative view it thinks its customers have of dealers by offering what it thinks will be a better car buying experience. What will worry franchised dealers the most is that Tesco has a very strong brand name and if successful it could mean supply of used cars will dry up and prices increase.

It is reported that Tesco hopes to drive the scheme through later this year and has already been in secret talks with the country’s biggest ex-fleet car provider Motability. Motability has access to 560,000 cars per year, with about 200,000 popular makes such as Ford and Vauxhall coming onto the market at the end of their lease life. Trade insiders said Tesco has been working on its project for a year and has already prepared the website address TescoCars.com in ready for an April launch on the market.

The industry is understandably worried about such a big brand wading into their territory. Motoring.co.uk deals with a huge number of car retailers every day and says the news is a huge worry. Founder and Director of Motoring.co.uk Chris Green said "Tesco is likely to market this in a way that will target dealers and that won't be good news. This worries me, and I'm sure it worries dealers too. In a year when many businesses are struggling to survive and looking to the secondhand market to keep them going, a big player like Tesco entering the market could send them under."

Chris Green also commented "The potential backlash that Motability would receive from the manufacturer is massive - Motability is a charity supported by car manufacturers and franchised dealers and a used car project with Tesco would not go down well at all."

Tesco refused to comment about any plans to sell used cars and a spokesman said the reports were only "speculation".

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By Geraldine Ashton Green
Feb 28, 2011
Why not leave a comment?
See All | Add a Comment