Last month, Think Insurance, the specialist motor trader insurer, brought to you the news that Tesco were planning on entering the used car market. Rumours and speculation were rife in March, despite Tesco refusing to pass comment on the subject. But it would seem that this particular rumour mill was spot on, when yesterday saw the launch of Tescocars.com.
With the new service clients are able to browse the online showroom, which gives them exclusive access to thousands of used cars before they enter the market. Customers will be able to search through up to 3,000 former hire or lease cars each week on the website. And for added peace of mind, the supermarket giant has come up with the ‘Tesco Cars Standard’ where every car will be inspected by the RAC to ensure a consistency across all vehicles offered.
The new website boasts a unique supply of cars, with each vehicle typically somewhere between 6 months and 3 years old and with just one previous owner. Add to that the promise of competitive prices and 2,000 Clubcard points, it looks set to be another successful venture for Tesco. Shoppers who use the service can expect their own customer services advisor who will deal with any queries and after sales. They can also opt to collect the car from a national handover centre or pay £149 and have the car delivered direct to their door.
Tesco’s Chief Executive, Andy Higginson, said that the site has been designed to provide a “convenient, easy and safe” alternative to traditional used car forecourts. He claims that the cars will be around 20% cheaper than forecourt-sold cars due to low overheads.Higginson goes on to explain the reasons for entering into the used car industry “It is about following the customer into areas of spend. It is a £24bn market and we will have a tiny proportion of it. We can bring trust. A lot of people find it intimidating with the hard sell. There is no hard sell here”.
This news seems to have evoked a mixed reaction, with some applauding the move and others criticising Tesco’s car sales venture. It is without question going to cause some lively debate within the motor industry. Think Insurance will continue to watch this new venture with interest.