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Jam Jar cars closes for new business

Jam Jar cars closes for new business

Jam Jar cars, the UKs first major online car retailer, has closed its doors to new business.
Jam Jar cars closes for new business
Jam Jar cars, the UK’s first major online car retailer, has closed its doors to new business.

Consumers are increasingly using the internet to research and buy new cars, but are turning to aggregator sites where they can compare multiple cars of the same type rather than single sourced brokerages.

The Jam Jar brand was heavily promoted by the RBS at its launch in 2000, and became the largest online retailer of new cars in the UK. Initially, it focussed on direct to consumer car sales via a tie-in with Dixon Motor Holdings, an RBS owned car dealer group.

When RBS disposed of the loss making Dixon Motor Holdings business in 2007 by putting it into administration , the Jam Jar business changed to a finance brokerage.

Lombard Vehicle Management, the vehicle financing arm of the RBS, has taken a decision to focus on direct to end user business, and has ceased to use brokers. Jam Jar effectively operated as a brokerage and as such is not required to introduce new business any more.

The Royal Bank of Scotland, which owns LVM as well as Lombard Business Finance, said the decision to stop using brokers could result in up to 85 job losses.

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By Terry Hogan, motoring.co.uk
Thu, 10 Sep 2009
Your CommentsBubble
Avatar 10/09/2009 09:42:13
Ling Valentine Commented:
www.LINGsCARS.com today launched a rescue package for JamJar.com contract hire customers who can no longer lease a new car. Within one hour of the Jam Jar service closing, LINGsCARS.com, the UK's favourite car leasing website with over 1.5 million visits a year, more than any other leasing website, launched what Ling Valentine calls a "Jam Jar rescue package". Valentine (34), a female Chinese immigrant, has been running her car leasing business for eight years and last year leased over £35 million of new cars. She has pledged to put every disappointed Jam Jar customer into a brand-new car for less than they were paying on JamJar.com. "I will prioritise these RBS customers and ensure they are on the road in a brand new car as soon as possible. I've got 5,000 cars listed to choose from and 30 different routes to market. My lower overheads mean that I can sell more cars, more cheaply than the competition. Having said that, a large part of the competition has now ceased trading."
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