Lloyds TSB has started offering new and used cars online in a service branded Motordirect, offering fleet-level discounts on 35 vehicle marques, including Alfa Romeo, Volkswagen, Ford and Vauxhall, to its 16 million customers.

One of the catchlines to its sales pitch is “no haggling and no pressure from salesmen”. The bank believes it will sell about 3,500 cars this year, together with significantly boosting its car finance business.

Lloyds TSB is offering UK-sourced vehicles only, delivered free, with part exchanges and free collection. The price also includes 12-months Road Fund Licence and roadside assistance with every car.

The vehicles are sourced through the bank's leasing operation Lloyds TSB Autolease which has 92,000 vehicles on contract. Autolease's dealers will supply the new cars. The bank promises 'fleet prices' by passing on the savings to customers from bulk-buying cars on its fleet.

Defleeted used cars are at the moment being offered only to the bank's staff.

Mark Stokes, Lloyds TSB's customer relationships director said: “The motivation behind Motordirect is to increase our customers' dealings with us, extending our reach beyond traditional finance. This is as much about selling finance as selling cars.”

He stressed that a transaction cannot be completed without a customer contacting the bank's call centre staff. They liaise between the customer and the dealer. The dealer delivers the car, establishing a relationship for servicing and maintenance of the vehicle.

Motordirect offers two ways to pay, personal contract purchase and personal contract hire.