A new motor industry co-operative is celebrating securing its first money-saving deal - on bulk lube oil.

The Motor Buying Group, formed earlier this year from seven separate co-operatives, says the deal with the unnamed supplier will reap a 23% saving on 600,000 litres of oil.

The seven members, operating a total of 107 garages representing 24 franchises, are Sunwin Motors, Co-Op Mptor Group, Ilkeston; Motorworld, Oxford; Sterling Motor Group, Ipswich; AMG, Peterborough; Wrights, Lincoln and the Priory Motor Group.

The Motor Group, which has a cumulative sales turnover of £700m, is now negotiating a finance package with what it calls the UK's top five retail credit organisations to provide flexible finance options for its customers.

Stephen Johnson, deputy chief executive of Yorkshire Co-operatives and co-operative spokesman, said: "This is just the start. By joining together this way we expect to make further big savings that we can pass on to our customers."