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OFF TOPIC => WORLD NEWS => Motoring => Topic started by: AlanHo on April 10, 2012, 12:54:16

Title: UK Tesco Car Sales Closes
Post by: AlanHo on April 10, 2012, 12:54:16
Supermarket chain Tesco has been forced to close its online used car venture, Tesco Cars, after just 12 months. The business was set up in partnership with Carsite but struggled to sell enough vehicles to be viable. With Tesco profits falling, the firm has decided to cut its losses and close the site.
 
Tesco Cars was was launched last April and promised 'to make the whole used car buying experience easier, safer, more transparent and more enjoyable'. It delivered vehicles direct to customers homes for a fixed charge of £149 and also offered 2000 Clubcard points.
 
The site claimed to advertise up to 3,000 cars every week with fresh stock added daily. Its range of cars, between six months and three-years-old, included MPVs, small hatchbacks and executive saloons. Servicing came from a nationwide network of more than 1,000 independent garages operating through an arrangement with National Service Network.
 
However, sources claim that the site was only selling 150 cars a month and began laying off staff over Christmas. Tesco Cars apparently had problems sourcing popular models, which would explain the poor sales numbers but with no improvement on the horizon the site has been closed and is no longer accepting orders.
 
Visitors to to the Tesco Cars website are now greeted by the simple statement below along with information for customers who have placed orders. The firm is offering a full refund of the £99 handling fee, or alternatively if the vehicle is in stock it can proceed with order. Customers who have already paid for their vehicles will still receive them. Any warranty is still valid as these are provided by Warranty Group, which will continue to honour all warranties.
 
Tesco Cars isn't the first high profile online car retailer to fail. Jam Jar cars was launched amid much publicity in 2000. A joint venture between RBS and dealer group Dixon Motors, it was the first major online car retailer, but closed in 2009 after Dixon Motors went into administration.
Title: Re: UK Tesco Car Sales Closes
Post by: eye30 on April 10, 2012, 13:20:06
I still believe in face to face when buying motor.

Also, it helps to actually see the car in person if it has already been used, i.e. 2nd hand, unless it is a brand new motor and has to be ordered in by the dealer.

I hear stories of people who go to a dealers and they say the car is actually at xxxx branch.  But we can do the deal now and I'll get it transported over.

It never comes, as already sold, or is not as advertised.  The dealer wants to get rid of a lower/higher spec etc and they badger the buyer into taking another spec or they then have the hassel of trying to get cash back.
Title: Re: UK Tesco Car Sales Closes
Post by: beerman on April 10, 2012, 14:24:13
I wouldn't buy that way because I know I can get a better deal in person. Just getting up and starting to walk away is a very powerful resource in the buyers toolkit.

This normally will get you more.

Thats when you throw your lowball deal at them, they reject it and you really walk away and wait for the phone call.
Title: Re: UK Tesco Car Sales Closes
Post by: Shambles on April 10, 2012, 14:37:36
I noticed this on The Sun last week and was surprised that Tesco even hoped they'd make a profit from this business. I'd always considered they'd entered the car sales market to bolster their insurance portfolio.

Title: Re: UK Tesco Car Sales Closes
Post by: eye30 on April 10, 2012, 14:48:17
It delivered vehicles direct to customers homes for a fixed charge of £149 

Rip off.

I could probably get to nearly 99% of places in the UK for less by public transport.

But if you are P/X then you would drive to collect..

and also offered 2000 Clubcard points.
 

= £20.

Not much of an incentive
Title: Re: UK Tesco Car Sales Closes
Post by: Doggie 1 on April 11, 2012, 00:18:07
I can't imagine buying a car from a supermarket.  :undecided:
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