Sir Trevor Chinn, chairman of Tesco Cars, said he doesn’t want to start a price war with dealers but the website will be “comparative and competitive”.

His comments follow Tesco Cars’ first month of trading which saw 500,000 visitors to the website.

The used car website said the virtual footfall translated into “strong sales figures” allowing it to hit its target, but Tesco did not say how many cars were sold or what its target was.

Sir Trevor Chinn, chairman of Tesco Cars, said: “The Tesco name is above the door and, with it, an even higher level of focus on delivering customer service and value, it is a business model rooted in the motor industry.

“We have a unique opportunity thanks to the very loyal 16 million customers of the brand. That opportunity is not only recognised by our historic partners but the new ones joining us all the time.

“It has been a great no-risk option for selling used car stock direct to the consumer for the past five years as Carsite.co.uk, and that acceptability will only continue to grow.”

Tesco Cars admit that, although the majority of used car buyers will still want to ‘kick the tyres’ and buy from a forecourt, its new channel is providing an alternative option for those happy to buy remotely and “buy rather than be sold to”.

Sir Trevor Chinn said: “We’re realistic about sales, how competitive our pricing is, and we’re honest in delivering for both the consumer and our motor industry partners.

“Our pricing is comparative with competitive dealers, and some models will offer bigger savings than others, but we’re not here to start a pricing war. This is more about choice and experience.

“The response to date from both sides proves that no-risk selling and no-risk buying online works and is only set to grow.”

•  See the May 27 issue of AM for a full feature interview with Sir Trevor Chinn and his plans for Tesco Cars.