SAINSBURY'S Bank has launched a new personal contract purchase scheme which aims to give its customers the benefits enjoyed by company car drivers. Speculation has been rife that supermarkets would move into car retailing, but Sainsbury insists it will not start putting cars on show in its stores.

Instead, it says, it will simply act as a financier of car deals. Its PCP, called Drive, will be provided by Freeway, part of Capital Bank. Capital is owned by Bank of Scotland, which has a 45% stake in Sainsbury Bank. Drive allows customers to choose from more than 3,500 vehicles and purchase them over two or three years.

Customers can choose how much deposit they pay from a minimum of 10%, with a fixed interest rate for the term of the agreement, and a guaranteed residual value. A maintenance option, including servicing and tyre replacement, AA cover, and GAP insurance can all be included in the monthly payment.