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Tesco to hook up with Motability to sell second-hand cars online23 Feb 2011by Donald MacKenzie According to a news item in today's Mirror, Tesco is planning to set up an online second-hand car dealership later this year. The supermarket giant has hooked up with Motability, it is alleged, the UK's largest fleet car provider, that can provide 560,000 popular car models per year once they have reached the end of their lease period. The website on which these second-hand cars will be traded will be TescoCars.com. It's not yet online but could go live as soon as April of this year. Car dealerships with current links with Motability are worried that their access to these cars could be diminshed given that it is estimated that Tesco will need to sell a minimum of 100,000 cars per year to make its online car-selling operation viable. This development is good news for motorists as it is likely that Tesco will offer highly competitve pricing. It's not such good news for car dealerships that, with higher overheads, will struggle to match these Tesco's deals. Given that Tesco's will be able to offer additional incentives such a s clubcard points and, potentially, half-price Tesco car insurance for the first year, uptake of the new service is likely to be good. Other car insurance providers, in addition to Tesco car insurance, can be reviewed below. |
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