DC Cook's chairman Derek Cook expects his new internet and call centre business to bring in more money than the group's £337m turnover dealerships within a year.

Motor Solutions, due for launch in June, has been allocated a £5.6m ad and promotions budget to target retail buyers, offering new cars at fleet prices, with two-thirds of sales likely to be used cars.

##Cook--right## Cook (pictured right) said: “By offering private motoring at fleet prices, I expect Motor Solutions to quickly dwarf the existing business, and to be at the forefront of the revolution.”

He predicts Motor Solutions, operating with lower overheads than his conventional car retailing business, will land 11,200 car sales this financial year, with 23,700 sales next year and 62,300 by year five. New car prices would be cut by removing the full dealer margin as well as fleet discounts and any applicable dealer bonuses.

Motor Solutions, which will be run from Barnsley, South Yorks, will take a small margin and a 'management charge', giving customers a discount of 4-15% on new cars. Developed at a cost of £1m, it is expected to be floated by the end of the year and extend Motor Solutions to mainland Europe within two years.

DC Cook's Motor Solutions announcement coincides with Pendragon Group's launch of Tins, an internet sales programme operating in step with its 200 franchised dealerships.

Trevor Finn, Pendragon chief executive, said: “Tins allows us to meet widespread customer and media concern about new and used car pricing. We are in a position to offer special deals on specific models and provide finance packages, which will be attractive to many customers.”