Tesco to Sell Used Cars

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WhatCarArticle said:

* Supermarket giant poised to enter used-car market
* Thought to be online sales only
* Already sells car insurance and tyres

Tesco is poised to start selling used cars.

Although there are no firm details of how the supermarket giant plans to sell used cars, reports suggest it has registered the Tescocars.com domain name.

This may point towards Tesco selling cars solely online, giving it the ability to keep overheads low and sell cars at ultra-competitive prices.

However, it is is also possible it could be planning to link with a conventional dealer, or sell from supermarket sites.

Tesco has been active in the car market in recent years, selling car insurance as well as personal loans, and tying in with tyre seller Blackcircles.com.

Would you buy a used car from Tesco?

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matc said:

So they've bought a domain name and WhatCar have made up the rest of the story?! There are some shocking journalists out there!

http://www.cardealermagazine.co.uk/publish/car-dealer-source-reveals-tesco-is-planning-to-sell-used-cars/48449

CarDealerMagazine said:

UPERMARKET giant Tesco is planning an imminent assault on the used car market in the UK, Car Dealer understands.

A source has told us that the conglomerate plans to sell hundreds of thousands of used cars a year – aged between one and four years old – via a website similar in style to Autoquake.

‘The sole aim of this will be for Tesco to up-sell its finance and insurance products to buyers of these used cars,’ said our source. ‘It’s likely they’ll make very little on each sale but instead use it to make lots of revenue from their financial arm.’

Leading online new car sales portal Motoring.co.uk’s director Chris Green told us this could be devastating news for the motor trade.

‘This news worries me and I’m sure it will worry dealers,’ he said.

So far Tesco has made no comment.

[volvoforlife]

The American supermarkets like WalMart have been doing this kind of thing for years so I'm not surprised its come here now.

Although Tesco and Quality are not two words I'd associate with each other.

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andy-integrale said:

In pure financial terms the only thing that matters to the punter is the "cost to change" and that probably stays the same....

This is true. It comes down to the bottom line, although dealers would still argue that consumers want the 'dealer experience' and will pay for it. If people are stupid enough to get impressed by a free cup of coffee while they rinse your bank account then they deserve to get ripped off.