Customers to get support after Cazoo enters administration

The administrators of collapsed used car online retailer Cazoo say they expect few customers who've bought cars from its platform to be affected.

However they said they will be contacting customers who had purchased service plans for their cars, or who have warranty claims on the used car they bought from Cazoo, to outline their options.

Cazoo abandoned its model of selling used cars online direct to the public last month, four years since it began sales.

Administrators Teneo said that as a result Cazoo does not hold any customer deposits and all customer vehicle deliveries have been completed.

Teneo also said that customers who had bought extended warranties "are not expected to be impacted".

People who have bought cars from Cazoo using point-of-sale motor finance will continue to be under the agreement made with their finance provider. Customers with a hire purchase agreement are legally permitted to exercise the right of voluntary termination if they have paid at least half the total amount payable in the agreement.

Cazoo sold off its remaining used cars in March and April after announcing it would pivot from selling its own used cars to providing an online marketplace for dealers and consumers to advertise their own cars for sale.

The joint administrators David Soden and Matthew Mawhinney of Teneo Financial Advisory are now seeking a buyer for the remaining marketplace business and assets.