The UK government passed a law in 2003

named the ’Car Block Exemption’ designed to increase competition in

the motor trade and loosen Manufacturer’s control of dealer networks.

The legislation allowed for dealerships to sell more than one brand

of car at the same site and allow independent garages to provide

after-sales care without invalidating the warranty.

This new law allowed for a new breed of

dealerships to emerge, the Car Supermarket. These dealerships could

stock new and used vehicles from any manufacturer and leave

after-sales care to independent garages. Typically Car Supermarkets

use a stack ’em high, sell ’em cheap ’no haggle’ model where the

price on the car is non-negotiable and at the lowest the dealership

can allow the car to be sold for.

It was the intention of the Car Block

Exemption law that increased competition in the motor trade would

bring down the price of cars as buyers in the UK where on average

paying 10% more than their European counterparts, which is what the

new Car Supermarkets brought to the trade and in turn spurred on the

’Nearly New Market’. While the price of a new car started to come

into line with the prices in Europe many in the UK found that they

still could not afford to buy a car brand new. However a car that was

1 to 3 years old and had depreciated in price was within the grasp of

the majority of these people and with fleet owners regularly renewing

their cars there was an ample supply of vehicles.

Today Car Supermarkets provide a

valuable service to customers. With the average Car Supermarket

stocking 300-600 cars customers need only visit one showroom to view

all the potential vehicles they may be interested in. The UK and

European Commission’s aims of the Block Exemption was to encourage

cross border trading and commercial independence of dealers. The Car

Supermarkets found that they would now be allowed to offer the

customer choice and affordable cars in a convenient way.feed through terminal blocks--https://www.china-forsent.com/product/feed-through-terminal-block/




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