Will Tesco Be The Next Car Leasing Company?
Thursday, 28. August 2008
As more people understand the benefits of leasing over purchase Tesco have announced the launch of a staff leasing scheme in association with Lombard Vehicle Management. They have launched a pilot website under the name of Tesco Cars. This is the supermarket giant’s latest handle on the service industry where it already sells finance, insurance and warranty. Could this be their inroad into car leasing plus Tesco points? Under the new scheme Tesco will allow employees to lease new cars over 2 – 4 years and be given 1,000 Tesco club card points for each year of the lease. As with normal lease deals cars will be sourced from dealers throughout the UK and delivered to the employees’ doors. A spokesman for Lombard said that this scheme is in its early stages and will be piloted to a select number of Tesco’s 300,000 UK employees before going live next year. They said that going live with the public market is ‘Not on the agenda at this stage.’ Wow – was that a little pink flying pig pass by my window then? This isn’t the first time that Tesco considered the car retail market, they looked at it in 2000 but it was dropped in 2002 following the block exemption review. By Graham Hill
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Helen Catterall Says:
Tesco seems to want to expand from food retailer to become a leading light as a general retailer and financial retailer as well. It is perhaps no surprise then that they are now dipping a toe in the automotive sector, as this ties in quite well with their existing financial services offerings.