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Tesco Going Into Used Cars

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...Is that they are negotiating to buy large quantities of 1-2 year old stock.The idea is to sell them as an aid to Tesco Insurance and finance.Feeling is that this will hit the franchised dealers hard.

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Growth at someone else's expense (again), that's Tesco

http://www.creditplus.co.uk/used-car-and-finance-news/Financial-and-Loan/Car-Dealers-Uncertain-About-Effect-of-Tesco-Plans-to-Sell-Used-Cars/998699494/

The UK used car industry has reacted with mixed feelings following Tesco's announcement that the group will soon be selling used cars. Car Finance buyers are no doubt watching the situation with keen interest.

The group plans to unveil the scheme during the second quarter of 2011. According to some sources the company has already started confidential talks with the UK's biggest provider of ex-fleet cars, Motability.

A deal with Motability will give Tesco access to that company's stock of 560,000 cars every year. This includes popular brands such as FORD and Vauxhall.

Industry insiders say that Tesco has been busy on the project for more than a year. A website has already been registered for the new used car group.

Used car dealers fear that Tesco's entry into the market will put pressure on existing stock levels and increase the average price of used cars. Tesco will need at least 100,000 cars to make its project a success. With stock levels in the used car market already at low levels, some feel the move could soon see car finance customers having to deal with considerable price hikes when purchasing used cars.

Others do not share this sentiment. James Baggott, the editor of Car Dealer Magazine said: "This could be brilliant news for buyers as it's likely the supermarket will price its stock aggressively and undercut many dealerships."

However, Chris Green, founder of motoring website motoring.co.uk, feels that at a time when many car dealers have to rely on used car sales to keep their business profitable, the entry of a huge player like Tesco could see profit margins shrink to such an extent that they can no longer survive.

Whether the Tesco move will therefore be to the benefit of the average car finance buyer or not remains to be seen.

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How on earth did Motability get so big?

If the disabled need money, then give it to them....but don't subsidise car purchases!

An explosion of qualifying disabled? It's another subsidy boom area that's helped the private sector to profit.

http://www.motabilitycarscheme.co.uk/main.cfm?type=CCPR

Our all inclusive package means that there are no hidden costs or unexpected charges. Everything is taken care of so that you can enjoy the most important part of getting a brand new car – getting out and about.

What’s more, the exchange of your allowance paid directly to us, is one less thing to worry about. We aim to provide a wide range of affordable choices for all our customers and with over 4,000 cars to choose from, you’re bound to find the perfect car to meet your needs. And to get you the very best deal, we negotiate with manufacturers every three months.

Our aim is to offer exceptional value across all ranges and types of cars available to lease through Motability. As of the 1st January 2011, we have some of the most attractively priced cars we’ve ever had, with over 300 of the cars available for no more than the cost of your weekly mobility allowance. The rest require an upfront payment, or what we call an ‘advance payment’, to cover the difference between the cost of the car and your allowance. Either way, you’ll be sure to find a car that suits your needs and your budget. And with Motability’s all-inclusive lease package everything is taken care of, so you can enjoy getting out and about.

http://www.motabilitycarscheme.co.uk/main.cfm?type=CHSW

If you receive the Higher Rate Mobility Component of the Disability Living Allowance or the War Pensioners' Mobility Supplement, getting a new car is easier and more affordable than ever. Through Motability, you simply turn part or all of that allowance into the car of your choice. Check your eligibility here.

No waiting lists. No credit checks. No assessments required.

95% of our customers choose to lease a car through Motability's Contract Hire agreement, which gives you:

*

Over 4,000 brand new cars to choose from

*

Insurance, servicing and maintenance

*

Full RAC breakdown assistance

*

Annual tax disc

*

Tyre and windscreen replacement

*

60,000 mileage allowance over 3 years

*

Many adaptations at no extra cost

*

You don't have to drive - you can nominate up to two other drivers and pay a little extra for a third

Our worry-free policy continues right to the end of your three-year lease with a seamless transfer to your new car. What's more, you can choose from over 4,000 cars - no wonder 97% of our customers would be happy to recommend us.

Bargain.

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How on earth did Motability get so big?

If the disabled need money, then give it to them....but don't subsidise car purchases!

That'll be at least three less shiny cars on my street.

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I'm always noticing when I walk past the disabled bays at the supermarket/shopping centre etc that they are disproportionately filled with brand new top spec cars.

Not saying this is a good or bad thing, just an observation.

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As a dealer mainly in the £3000 -£5000 price range I don't particularly fear this as I think most of the cars are going to be £6k+.However the question needs to be asked: Why is the taxpayer subsidising Tesco? The higher rate disability allowance is £71.40 per week and a motability car just replaces this.As the vast majority of the vehicles are at the smaller,cheaper end of the price range,and this works out at £11,138 over three years - and many only have 10-15k on the clock- it's pretty clear that the end sale price represents pretty much all profit, typically £5,000. Straight from the taxpayer into Mr.Tesco's pocket.

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About Motability Operations

Motability Operations is a not-for-profit company that runs the Motability Car Scheme, and more recently, the Powered Wheelchair and Scooter Scheme. The largest fleet operator in the UK and the biggest supplier of used cars to the trade, we are owned by the major banks: Barclays Bank plc, Lloyds Group plc, HSBC Bank plc and Royal Bank of Scotland plc.

As operators of the Motability schemes, our activities are regulated and overseen by the charity Motability. Our annual turnover is over £2.2 billion and our assets worth £3.7 billion. All surpluses are reinvested in the business for the benefit of our customers.

We sell over 145,000 used cars a year. The number of cars we purchase each year accounts for no less than six per cent of all the new cars sold in the UK. Since our beginnings in 1978, we've supplied customers with over two million cars.

Wow!! Wheels within wheels. No wonder there are so many disabled parking spaces in supermarkets and for that matter all over the place these days. I'll bet the vast majority of those two million motability cars were supplied since 1997.

A £multi billion company owned by the banks and "not-for-profit", yeah right - well live and learn :lol:

Under the radar takes on new meanings :lol:

It'll make things difficult for small car sales companies if 2/3rds of the motability cars go to Tesco outlets and the other 1/3rd is all that's left. Tesco and the car marts will be the competition and I expect the fresh competition will eventually help to reduce prices although maybe when they're building up stock there might be some price spikes heralding eventual price drops.

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How on earth did Motability get so big?

If the disabled need money, then give it to them....but don't subsidise car purchases!

:lol: Had MB crept beneath your radar?

It looks like a gravy train with biscuit wheels for all those involved - manufacturers, the dealers, the finance providers and of course the 'disabled'. No wonder Tesco want a piece of this big juicy fruit.

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It's not word on the street it's been around for months. Motor Industry is trying to spook them about negative experience of Virgin doing it but if the price is right, people will go to them.

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Motability these days.

The image for the public.

http://www.cheapreclinerchairs.co.uk/index.php?route=product/product&product_id=93

The reality

http://www.zcars.com.au/images/bentley-s3-e-design-concept1.jpg

http://fineartamerica.com/images-medium/cigar-justin-williams.jpg

:lol:

UK taxpayer having to just tough it all out, year after year.

(no offence meant to the disabled of course)

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As a dealer mainly in the £3000 -£5000 price range I don't particularly fear this as I think most of the cars are going to be £6k+.However the question needs to be asked: Why is the taxpayer subsidising Tesco? The higher rate disability allowance is £71.40 per week and a motability car just replaces this.As the vast majority of the vehicles are at the smaller,cheaper end of the price range,and this works out at £11,138 over three years - and many only have 10-15k on the clock- it's pretty clear that the end sale price represents pretty much all profit, typically £5,000. Straight from the taxpayer into Mr.Tesco's pocket.

Because the UK is a corporatocracy.

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For me Tesco is about 1 centimetre away from making my company blacklist. If this is true it might tip it. Their diversification (business speak for greed) knows no bounds.

Example: I've got a loan with them that I used to buy a car. I know! I know! a loan to buy a depreciating assest not entirely smart but I like cars! :lol: anyway that's not my point.

The loan is 7.5%APR. In recent months I've been hit with a few large bills (tax bill included). They'd sent me details of potentially borrowing some extra at a preferential rate as an existing customer ~7.2%APR. I called them to enquire. They offered me 9.5%APR!!!

Really? an unblemished credit history, no missed payments and that's the best you can do? Oh go on then Tesco where do I sign!

Told 'em to b*llock$ greedy fools.

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Motabilty cars tend to show up in the classifieds with low mileage , lot of ford focus' with rusted spark plugs from the engine not getting up to temp.

Also if an odd bit of the car is missing like a tool kit or some parts of the engine cover it's because the dealer lifted it on hand back before resale.

I'd avoid them because if a vehicle is being used for mobility it will be short journeys and lots of initial wear at the worst period of an engines life,

they also tend to be overpriced because of the low mileage.

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Motabilty cars tend to show up in the classifieds with low mileage , lot of ford focus' with rusted spark plugs from the engine not getting up to temp.

Also if an odd bit of the car is missing like a tool kit or some parts of the engine cover it's because the dealer lifted it on hand back before resale.

I'd avoid them because if a vehicle is being used for mobility it will be short journeys and lots of initial wear at the worst period of an engines life,

they also tend to be overpriced because of the low mileage.

Many have also been adapted causing untold damage. Once my old Renault developed a sensor fault at work and a wheelbound colleague kindly offered me a lift back in her motability car (part-timer) and all I can say is that it smelt of wee!!!! kind of her to offer though.

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...Is that they are negotiating to buy large quantities of 1-2 year old stock.The idea is to sell them as an aid to Tesco Insurance and finance.Feeling is that this will hit the franchised dealers hard.

They control all other aspects of our lives why not cars.

Why do people not see that the supermarkets are worse than the banks. They really are greedy, manipulative and controlling. Just look at their growth and profits. Also the way they wipe out the smaller traders who get in their way.

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It's not word on the street it's been around for months. Motor Industry is trying to spook them about negative experience of Virgin doing it but if the price is right, people will go to them.

I guess they didn't make money. Tesco Cars is now shut as of this weekend. This once mighty company is lurching from one disaster to the next. Time to buy Tesco stock?

(interesting to read the comments about the motability scheme again)

http://www.mirror.co.uk/lifestyle/motoring/tesco-cars-drivers-left-in-the-lurch-781769

http://www.tesco.com/cars/

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The reason motability cars are quite new, is because they are leased!

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www.tesco.com/cars/

Tesco just got out of the used car business! :huh:

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www.tesco.com/cars/

Tesco just got out of the used car business! :huh:

Just in time, we got a 7 seater MPV from Tesco Cars for just over £7k, delivered to our house. Ex mobility, less than 10000 miles, 3 years old. Drives like new, smells like new. OK it's French but you can't have everything.

The local main dealer wanted about £10K for a car of the same age with significantly higher mileage

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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