Thursday, March 03, 2011
Tesco eyes the car finance market
Following its reputed upcoming launch into the UK used car market, Tesco is understood to be planning a suite of car finance offerings to complement personal loans from Tesco Bank.
The news emerged at an asset finance seminar held by the National Association of Commercial Finance Brokers on 1 March, where business leaders from two major UK lenders stated that they knew of the supermarket giant’s intentions to move into the car finance market.
In April, Tesco is expected to begin retailing used cars acquired through a tie-up with ex-fleet provider Motability. According to information leaked to Car Dealer magazine, it will sell cars through a partnership with online retailer carsite.co.uk.
At launch, Tesco is expected to provide personal loans to customers looking to buy used cars through the site. However, there is widespread speculation that Tesco is talking to at least one hire purchase provider with a view to providing the product, and that it may later look to provide HP and PCP from its own balance sheet.
Tesco commented to Motor Finance that its used car venture – including any finance component – was “still speculation at this point”. A spokesperson later commented “if at any point we do decide to start selling cars, we will make a formal announcement.”
DATED: 03.03.11
FEED: MF
