As we predicted might happen (Tesco will probably not be selling used cars this time next year) supermarket giant Tesco has called it quits on its “Tesco Cars” business, after only 12 months of trading.
Motor Trade Insider revealed back in June that the business model was probably unsustainable and just one year on from their fanfare launch Tesco has decided to close the operation.
A statement on its website reads: ‘We started Tesco Cars in good faith and we always aim to do a good job for customers.
‘However, following a review of the business model we and Carsite, our partner, have decided that we cannot offer customers a satisfactory range of vehicles and as a result, have decided it is right to close the business.’
Customers are being told to contact Tesco Cars’ customer services hotline for further information, and, if Tesco Cars are unable to fulfil customers’ orders they will refund their deposits in full.
The business started trading in April 2011 and allowed customers to find their car online, secure it with a £99 deposit, then receive a full RAC report with video and photo gallery. If the customer was happy they could collect it or have it delivered to their home for just £149.