The UK government passed a law in 2003 named the 'Car Block Exemption' designed to increase competition in the motor trade and loosen Manufacturer's control of dealer networks. This new law allowed for a new breed of dealerships to emerge, the Car Supermarket.
The UK government passed a law in 2003 named the 'Car Block Exemption' designed to increase competition in the motor trade and loosen Manufacturer's control of dealer networks. The legislation allowed for dealerships to sell more than one brand of car at the same site and allow independent garages to provide after-sales care without invalidating the warranty.
This new law allowed for a new breed of dealerships to emerge, the Car Supermarket. These dealerships could stock new and used vehicles from any manufacturer and leave after-sales care to independent garages. Typically Car Supermarkets use a stack 'em high, sell 'em cheap 'no haggle' model where the price on the car is non-negotiable and at the lowest the dealership can allow the car to be sold for.
It was the intention of the Car Block Exemption law that increased competition in the motor trade would bring down the price of cars as buyers in the UK where on average paying 10% more than their European counterparts, which is what the new Car Supermarkets brought to the trade and in turn spurred on the 'Nearly New Market'. While the price of a new car started to come into line with the prices in Europe many in the UK found that they still could not afford to buy a car brand new. However a car that was 1 to 3 years old and had depreciated in price was within the grasp of the majority of these people and with fleet owners regularly renewing their cars there was an ample supply of vehicles.
Today Car Supermarkets provide a valuable service to customers. With the average Car Supermarket stocking 300-600 cars customers need only visit one showroom to view all the potential vehicles they may be interested in. The UK and European Commission's aims of the Block Exemption was to encourage cross border trading and commercial independence of dealers. The Car Supermarkets found that they would now be allowed to offer the customer choice and affordable cars in a convenient way.
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Tips for selling your car to an online car buyer
I'm a software developer and over recent years I've developed a number of car buying websites so had an advantage when it came to selling my own car. ...
The best ways to sell your car
If you sell privately whether this be to friends, family or strangers you need to pay the finance off before you sell it...bit of chicken and egg here, as no doubt you need the money tied up in the car to pay the finance off. Some negotiating may be needed or indeed the buyer could pay the money direct to the finance company and the balance (if there is any) to yourself.
