Tesco moves into UK's second-hand car market

Tesco has launched into the UK's second-hand car market in the group’s latest venture to expand outside traditional supermarket retailing.

Tesco Cars went live online today offering an internet-only service for buyers of used cars.

Its move to tap into the £24bn (€27.2bn) motor market comes after Tesco bought a significant minority stake in online dealership Carsite for an undisclosed sum.

Tescocars.com will advertise up to 3,000 cars a week sourced from hire and lease fleets – and will reward shoppers with 2,000 Tesco Clubcard points if they buy a vehicle through the site.

It aims to offer good deals by supplying car stock direct from the source and claims each car will go through a 167-point independent inspection by the RAC, including a ramp inspection and road test.

Andrew Higginson, chief executive of retailing services at Tesco, said: “By supplying directly to customers, there is no middle man, no expensive showroom and no salespeople on commission.”

He added: “There’s no pressure, no hard sell. You can select and buy your car from the comfort of your own home and, just like your weekly shop, we will even deliver it to your front door.”

Tesco adds the car operation to its growing portfolio, spanning financial services, pet insurance and film production.

The group said it wants to offer a trusted and convenient second-hand car service, with a seven day, money-back-guarantee if buyers are unhappy with their purchase.

Customers will be able to search for cars according to lifestyle and budget, according to Tesco.

Motor industry veteran Trevor Chinn will be chairman of Tesco Cars. Chinn, who also has a stake in Tesco Cars, has worked for more than 50 years in the motor trade, making his name with vehicle leasing firm Lex Service, which became RAC after buying RAC Motoring Services in 1999.