Pendragon is to use the fleet-buying power of its C.2k contract hire company to offer cheap cars to retail customers via the internet.

The AM100 leader is one of the first dealer groups to take advantage of promised new legislation which will prevent carmakers dictating prices on the basis of end user.

The company last week launched www.tins.co.uk with a promise to challenge the growth of parallel imports and offer customers “access to very low prices”, while hoping to have more new and used cars for sale than any other website in the UK.

##Finn--left##Trevor Finn, chief executive,(pictured left) said: “So far almost all car internet sites have been third-party type, where the host company does not have its own vehicle supply. As a large dealer group, we fully understand the crucial nature of factors such as part exchanges, finance and delivery times.”

But he made it clear he did not believe the internet would seriously challenge the traditional car dealership for car sales, adding: “The internet will be one small part of the marketing communication process. It is a complementary route to market.”

C.2k, which has a fleet of some 5,500 cars and a turnover of £36m will source cars through Pendragon dealers and other suppliers.