Fleet News

Tesco Cars launches using ex-fleet stock

Tesco has launched a used car retailing service that will sell ex-fleet stock direct to consumers.

The supermarket giant's plans for used car retailing has been the subject of speculation for months and its business builds on the established Carsite.co.uk infrastructure.

Fleet News can reveal Tesco had been in discussion with Carsite for 18 months before the official launch in April.

Tesco will continue to source cars from ex-fleet and short-cycle rental stock, although with access to 16 million Tesco Clubcard holders, there is potential for significant growth over sales achieved to date by Carsite (less than 10,000 since its launch in 2006).

Tesco Cars will advertise up to 3,000 cars every week with fresh stock added to the website daily, offering a range of models between six months and three years old.

Vehicles are sold as ‘buy it now’ – available immediately – or ‘pre-order’ – about to be returned to the vendor by the current user and typically available a month after the point of reservation.

Customers reserve their chosen car with a £99 handling fee, fully refundable if they choose not to proceed with the purchase.

Buyers will then be allotted their own, named adviser, who can help answer questions and make sure the buyer is happy with their new purchase.

Cars will be sold with a no-quibble seven-day money-back guarantee, and for additional peace of mind, HPI checked and a month's warranty.

A range of Tesco financial services including vehicle insurance will be offered at the point of sale and as buyers will receive 2,000 Clubcard points for each car purchase.

Tesco customers will be able to choose after-sales servicing support from a nationwide network of about 1,000 independent garages operating through an arrangement with National Service Network (NSN) and providing servicing and general vehicle repairs up to 30% cheaper than franchise dealers.

Sir Trevor Chinn, chairman of Tesco Cars, said: "When buying a used car, consumers want to know they can trust the information supplied, that they are getting value for money and a good product, all supported by good customer service. Importantly they also want to be able to take their time to make the right purchase for them.

"By marrying these principles, the success of the Tesco brand, and the transparent and unpressured online sales environment, we believe we will be delivering a positive new experience for today’s car buyer."

Andrew Higginson, CEO of retailing services at Tesco, said: "Trust, value and service are at the heart of the Tesco Cars experience.

"The range of models – from electric cars designed for the city to family-sized MPVs – is immense.

"By supplying directly to customers, they can be sure they are getting the best value out there.

"And we will say ‘thank you’ with 2,000 Clubcard points which can be redeemed for goods, services and rewards in the usual way."

Full story in the April 14 issue of Fleet News.

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  • Patriot - 06/04/2011 10:21

    Tesco are about to take a pratfall. No test drives? One months warranty? Named advisor? No one in their right mind will buy a car without a test drive, unless Tescos' target market is Numptys-R-Us. You have 6 months from the time of purchase to reject a vehicle,why have'nt Tesco mentioned this? Unless the advisor is an ex mechanic/technician how will he/she be able to answer questions about DMF longevity and reliability on VW and Ford cars or the electrical gremlins on P38 Range Rovers? Will they know the difference between mileage based and long life servicing? Recommended cambelt kit changes and does the water pump and thermostat have to be renewed at the same time? I can think of 3 companies off the top of my head who engage in unethical selling of secondhand vehicles and have a string of CCJ's between them that reinforces their inabilities to offer proper customer service.They sell ex fleet vehicles as well. Got to do better than this Tesco.

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