RETAIL giant Sainsbury's yesterday became the first UKsupermarket to sell cars in its stores nationwide. The move followsthe success of its pilot scheme in 60 stores since September, 14 ofwhich were in Scotland.
Sainsbury's Bank Drive is part of the company's joint venturewith Bank of Scotland. Hatchbacks, such as the Peugeot 206, haveproved the most popular so far. With 3500 models to choose from,purchasers can pick up a leaflet at their nearest store and call afree- phone number to order their car.
Customers put down a #215 deposit and pay from #152 per month,and the car is delivered within six weeks. At the end of a two orthree-year agreement, customers can choose to order another car,hand it back, or purchase it at a price agreed when it was ordered.
Chief executive Hamish Taylor said: "Our scheme is popularbecause the special finance package makes the monthly payments moreaffordable for our customers. It enables them to drive a car theythought they would never be able to afford."
Potential drawbacks with the project include the absence of trade-ins, while customers will not be able to drive the car home on theday of purchase. Sainsbury's and the Bank of Scotland's movereplicates the Royal Bank of Scotland's sidestep when it launchedjamjar.com last month - a seller of cars online - through itssubsidiary Internet service directline.
A spokesperson for the Scottish Motor Trade Association hasraised concerns over a conflict of interest if the banks aresimultaneously providing finance for car purchase to clientsincluding car dealers while selling cars as a sideline, in effectcompeting with their customers.
No comments:
Post a Comment