MG Rover dealers reportedly have accepted an offer from Bank of Scotland to set up a £25 million fund to help clear a backlog of 15,000 unsold MG and Rover cars left in limbo following the collapse of the West Midlands car maker last month.
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The Daily Telegraph said the deal was hammered out at a meeting between a group of MG Rover dealers and senior executives of Capital Bank, a car financing subsidiary of Bank of Scotland, in Edinburgh on Tuesday.
The paper noted that Capital is the technical owner of the cars but the dealers have a duty to sell them – the collapse of MG Rover meant that dealers were unable to offer the 20% discount that had been covered by the carmaker.
Under the agreement, the Telegraph said, Capital will fund a discount of 15% off the purchase prices of the cars, as well as providing two-year warranties and registration documents for each vehicle, free transport to get the cars to the dealers, and marketing assistance.
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