Car,Supermarkets,The,governmen car Car Supermarkets


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The UK government passed a law in 2003named the 'Car Block Exemption' designed to increase competition inthe motor trade and loosen Manufacturer's control of dealer networks.The legislation allowed for dealerships to sell more than one brandof car at the same site and allow independent garages to provideafter-sales care without invalidating the warranty.This new law allowed for a new breed ofdealerships to emerge, the Car Supermarket. These dealerships couldstock new and used vehicles from any manufacturer and leaveafter-sales care to independent garages. Typically Car Supermarketsuse a stack 'em high, sell 'em cheap 'no haggle' model where theprice on the car is non-negotiable and at the lowest the dealershipcan allow the car to be sold for.It was the intention of the Car BlockExemption law that increased competition in the motor trade wouldbring down the price of cars as buyers in the UK where on averagepaying 10% more than their European counterparts, which is what thenew Car Supermarkets brought to the trade and in turn spurred on the'Nearly New Market'. While the price of a new car started to comeinto line with the prices in Europe many in the UK found that theystill could not afford to buy a car brand new. However a car that was1 to 3 years old and had depreciated in price was within the grasp ofthe majority of these people and with fleet owners regularly renewingtheir cars there was an ample supply of vehicles.Today Car Supermarkets provide avaluable service to customers. With the average Car Supermarketstocking 300-600 cars customers need only visit one showroom to viewall the potential vehicles they may be interested in. The UK andEuropean Commission's aims of the Block Exemption was to encouragecross border trading and commercial independence of dealers. The CarSupermarkets found that they would now be allowed to offer thecustomer choice and affordable cars in a convenient way. Article Tags: Block Exemption

Car,Supermarkets,The,governmen

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