MG Rover's finance company is to help dealers trying to sell some of the thousands of unwanted cars they claim were pumped into the network in the final months before the car company's collapse, according to the Daily Telegraph.

Following a meeting between Capital Bank, an arm of Bank of Scotland, and the MG Rover dealership association in Speke, Merseyside, an association spokesman told the paper full details of the aid offered by Capital would become clear in 10 days' time. He reportedly said: "It was very positive, a constructive meeting. We have come up with a suite of initiatives, such as help with sales allowances."

The Daily Telegraph noted that MG Rover dealers are already shouldering a £25 million bill from collapsed warranty and price cutting deals which are usually covered by the car maker and are now facing more costs from selling off the unwanted cars.

The spokesman reportedly accepted there had been "some haziness" at Capital over whether orders for new cars were coming from the Longbridge plant or the dealer network and this confusion led to over-ordering.