Tesco Cars Enter the Motor Trade
Tesco Motor Trade adds to their expanding portfolio.
There seems to be no end to Tesco and the services they offer; from grocery shopping, insurance and even trading in unwanted gold. Now the supermarket giant has set its’ sights on the motor trade industry.
The service titled “Tesco Cars” will enable customers to select a vehicle from leasing companies with cars ranging from six months to three years old with a starting price of £3000. Those that choose to go through Tesco’s service will have to pay a £99 deposit securing the vehicle which can then be collected from a handover centre; or alternatively the vehicle can be delivered to any mainland UK address for £149.
Tesco are able to offer such competitive prices by cutting down on sales staff, eliminating the need for an expensive showroom and providing cheap motor trade insurance meaning they don’t need to fund test drives.
To complete the package an RAC inspection that includes a video for the prospective buyer to view will also be available. The question this latest venture raises is how much is it going to affect local retailers and should motor dealers be concerned? One pound in every seven spent in the UK is allegedly taken by Tesco so maybe they should be.
Concerns will no doubt be raised and it could see the motor trade adopting a new approach when it comes to browsing for a new set of wheels when online. One way in which expenditure can be kept to a minimum is by sourcing cheaper motor trade insurance thus freeing up funds for a stronger online presence.
In an age where purchasing goods online such as clothes, books, groceries and even cheap car insurance is very much the norm the concept of purchasing a motor vehicle may seem appealing from a financial point of view but may not be so attractive to many users. It can be easy to return a book or get a refund on clothes but making such personal purchases such as cars online may not give customers the first hand experience they would expect.
Motortraders Online – is this the future?
Being an online service also limits not only the physical purchasing of a vehicle, but also but that whole build up process that comes with it. You can arrange to view a particular vehicle but even then it requires the buyer to make their way to a listed location.
Is this really a process that seems more appealing than sitting down with another human being and describing your needs? Yes, the online route allows buyers to read reviews, see videos and ask about the quality of the vehicle but can that replace the feeling that one can get when test driving a car?
That new car smell, getting a feel for the way it drives, even holding those keys for the first time are all part of what most people come to expect when parting cash with what is likely to be the second largest purchase of their lives after buying a house. Part exchange isn’t an option either as the Tesco service is unable to offer such a service.
Purchasing a car online also limits the after sales service users can expect. Indeed Tesco offer a wealth of extra’s such as motor insurance, taxing and finance but these options can all be discussed but these are all options that can be tweaked to an individual’s needs when dealing with a professional form the motor trade directly.
Without question Tesco’s latest venture at gobbling up another market will be popular with some. After all the amount of Club Card points gained when purchasing a car must be astronomical, but do potential motor vehicle buyers really want to replace visiting a showroom?
Perusing the selection of available motors in the flesh all adds to the excitement of a car buying experience; and knowing there is a motor trade expert at your beckon call to give help and advice adds to a process that cannot be experienced with the click of a button.
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