Tesco set to become even bigger by selling used cars

Supermarket giant Tesco has launched a car selling website that it claims will provide any buyer with an improved experience. For a long time Tesco has branched out from just selling food, with other arms of their business selling products ranging from mobiles to insurance.

Now Tesco have dipped their toes in the £24bn used car market after taking a significant stake in the online dealership; Carsite and have launched tescocars.com Tesco say that they have analysed all of the problems that that tens of thousands of buyers have had when buying a second hand car every year.

Tesco will be in direct competition with some other large second hand car firms, including Car Giant and Car Craft and they are targeting vehicles which have normally only had one owner and have been looked after properly. Ex-Motabilty scheme cars which should be nearly new and will have a full service history appears to the sort of market Tesco are targeting. This means that the second hand car buyer will be getting what feels like a brand new car, but for far less money than a new car costs.

Each vehicle will meet the Tesco Car Standard (a 167-point independent RAC PLUS inspection) and vehicles can be delivered to the buyer’s home or be collected from a handover centre. The vehicles will be sold at competitive prices and have excellent customer service support as well as dedicated after sales support from a nationwide network of more than 1,000 independent garages. These will offer vehicle repairs and servicing which they claim will be up to 30% cheaper than any franchise dealer. Tesco can even give a motor insurance quote to customers buying a vehicle from them.

Lee Boyce, from a money saving website, said “£1 in every £7 spent in United Kingdom shops goes to Tesco. And now they have branched out again into another market to add to its quickly expanding portfolio. The website, although in its infancy is a good one and makes it easy to see price, make, model and any other feature needed. It is also a good move to only be dealing in cars that are typically between six months and three years, rendering them pretty much as good as new.”

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