Thursday April 14th, 2011 15:38 Tesco enter the Used Car Market

Tesco, the UK’s largest supermarket chain, has entered the used car market with the launch of the website Tesco Cars.

Citing the tens of thousands of consumers who complain every year to the watchdog Consumer Direct about the service they receive in the traditional motor market, Andrew Higginson, CEO of Retailing Services at Tesco, believes that Tesco Cars will be able to provide consumers with a simpler, more reliable and cost effective service than many used-car dealers currently provide.
In a press release announcing the launch of the website, Higginson said: “By supplying directly to customers, there is no middle man, expensive showroom and no sales people on commission. Buyers can be sure they are getting the best value out there – and we will say ‘thank you’ with 2,000 Clubcard points.”

The website promises a selection of up to 3,000 second-hand cars every week, all between six months and three years old, and all independently inspected by the RAC. Additionally, cars listed on the website will be sourced from retail and business stock, and will typically come with a full service history.

Customers can either make an immediate purchase by selecting the ‘Buy it Now’ option, or they can select the ‘Pre-Order’ option to reserve their chosen car. Selecting this option comes at the cost of a £99 handling fee, although this is refundable should customers decide against purchasing the car.

It may seem problematic that the Tesco Cars website doesn’t allow customers to either see in person or drive a car before they buy it, but Tesco Cars aim to get around this by providing buyers with a seven day, no quibble, money-back guarantee if they are unhappy with their purchase. It will be interesting to see if this becomes an issue, but Sir Trevor Chinn, Chairman of Tesco Cars appears confident that Tesco’s move into the used car market will provide “a positive new experience for today’s car buyer.”

 

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