A website that claims to be able to buy brand new cars at 40% below showroom prices hits the road this week.
CarRush.co.uk says it will get the discounts by pooling orders from customers and negotiating bulk discounts with carmakers. It will work as a coupon scheme with customer buying refundable CarRush coupons.
The firm says 80% of car buyers that purchase a new car based on a monthly payment.
CarRush.co.uk will work in two ways:
Offering daily/weekly dealsConsumers can purchase a refundable 'CarRush Coupon' (£99 to £199) to secure one of the sites' limited deal with discounts of up to 40%. If finance is approved, then the vehicle is delivered to the customer's door by a franchise dealer complete with the full manufacturer's warranty and servicing available from the local dealer.
Reverse Group BuyingIf the vehicles the website has on offer aren't of interest to a car buyer, then they can sign up as a member and specifically request a deal to be constructed for the new car that they want.
When CarRush has enough members wanting that car it will source the vehicles in bulk, at large discounts from its network of main dealers and manufacturer partners and offer the deals exclusively to members.
BackersBacked by car finance comparison website FinanceAcar.co.uk, CarRush.co.uk is the brainchild of Mark Peatey and Nadim Saad. Director and co-founder Peatey said: "The last 12 months has seen a growth of 42% in the amount of new car finance provided to consumers. Since successfully launching Financeacar.co.uk several years ago, we have seen austerity increase the use of finance to buy cars because of the increased availability of more flexible low cost finance options.
"Based on this growth and on the back of the mass appeal of voucher and coupon-based websites such as Groupon, we saw CarRush.co.uk as the next step. It removes the need for consumers to shop around for the best car price and then having to shop again for the best finance deal because we combine the best possible deals for both in to one compelling low monthly price.
"CarRush also offers reverse group buying which allows consumers to tell us what car they want and we then source an unbeatable car plus finance deal on the vehicle of their choice."
CarRush said research had found a discount of 10% off the list price almost doubles the number of consumers who would buy a new car in the next three months. The amount of people looking to buy a new car quadruples if the discount off the list price is 30%.
Coupon problemsAnd CarRush realised there might be problems with the coupon idea. It said: "To avoid the problems that other daily deal websites have suffered, customers are not charged for the CarRush Coupon until they have spoken with our customer services team; their order and stock is confirmed; and they have stated that they want to proceed."
CarRush.co.uk also provides discounts on car related products and services such as accessories (sat navs, tyres), servicing and MoT.