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.
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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.”
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