By Felicity Ussher, 29 March 2000 00:20
NEWS The Consumers' Association (CA) has launched an online car sales arm as part of its campaign against "Rip Off Britain". The Web site - www.carbusters.com - offers price cuts of up to £3,000 per car, if the consumer is prepared to wait three months for delivery. The CA charges £200 per transaction to cover its costs, but claims it does not plan to make a profit. The launch is timed to pre-empt a UK government study into the import and supply of new cars. Due before mid-April, the Department of Trade and Industry's 1,300-page report is expected to propose strong measures against the UK's car dealing cartel. A CA spokesman said: "We are using ecommerce to help break up the cartel and to raise awareness of the issues. We have relationships with a number of retailers of imported goods online, and we find the electronic business model leads to low overheads and very competitive pricing." He added that online retailing is a good way to assess demand for a new service, before committing telephone-based resources - the CA is considering adding a Carbusters telephone service within three months. A spokesman for the DTI said: "Ministers have always said they want consumers to get a fair deal. If Carbusters offers consumers a fair price and high quality service, then the DTI welcomes it." He was unable to say more as it would impinge on the upcoming report, which is commercially sensitive. So far, Alfa Romeo, BMW, Ford, Mercedes, Range Rover, Saab and Volkswagen have all signed up to the scheme. All cars are UK models with right-hand drive.
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