Tesco has teamed up with Carsite to enter the used car market.
The supermarket giant has taken a minority stake in Carsite which will now be run as a Tesco brand.
It will be working with industry veteran Sir Trevor Chinn who last year took a stake in Carsite.
Tesco is the first general retailer to enter the market and compete with supermarkets and dealers. Earlier this year it moved into the tyre business for the first time.
The new used car website offers access to thousands of cars from fleets before they come on the market.
The cars are being delivered to consumers for a charge of £149. Cars can be reserved online for £99 and there is access to reports, image gallery, HPI history and a RAC video test drive.
On the aftersales side, Tesco has partnered with National Service Network garage group which will operate as Tesco Autocentres, offering MoT, servicing and vehicle repairs at a claimed 30 per cent discount on main franchised dealer prices.
Autocentres will collect and return owners cars to their home or place of work. All cars come with a RAC platinum warranty.
Tesco is also offering finance through Tesco Bank, which is also offering insurance, personal loans and breakdown cover.
The website today included testimonials from the former Carsite customers.