CAR supermarkets say they are winning the battle against up-and-coming internet-based retailers, both in terms of service and in capturing fleet business. Retail centres claim to be selling hundreds of cars to fleets - without the lengthy waiting times associated with web-based retailers and often at cheaper prices.

But Virgin Cars, Pendragon, which has launched its own internet retail site, and carbusters, the web-sales channel established by the Consumers' Association reckon the supermarkets cannot compete on service or choice.

Amid the war of words between the two parties the recommendation from the Association of Car Fleet Operators is 'stick to the traditional car buying methods'.

ACFO director Stewart Whyte said there was a 'reasonable feeling of comfort' that buying through traditional sources in the UK was best overall because of fleet discounts, goodwill and warranties offered by dealers. He also cited worries over lower residual values on imported cars as another reason for avoiding internet or European sourced cars.

'An individual buyer can spend time selling a car by putting it through the classified ads, but the fleet manager cannot,' he said.

Richard Travis, call centre manager at Motorpoint in Derby, said: 'We don't do contract hire or leasing, but we are constantly supplying vehicles to hundreds of outright purchase and lease purchase fleets. In fact, I would estimate that up to 25% of the 450 cars we sell a week go to the corporate market.'

Travis denied car supermarkets would suffer as a result of the proliferation of 'dot.com' new car retailers. 'We base our business on the stock we have here, not on fictitious orders or a six month waiting list,' he said.

He said this was the key reason why Motorpoint's prices were cheaper than internet retailers, sometimes to the tune of thousands of pounds. He also said Motorpoint was able to offer cars from 'every manufacturer', while Virgin Cars and carbusters.com were unable to offer certain Vauxhall or Ford models - a key omission for interested fleet buyers.

Website retailers hit back, with a spokesman for Pendragon's tins operation, saying: 'The reason we can beat off the competition from the car supermarkets is that we offer cheap cars that you can buy at your work desk or at home. You don't have to visit a showroom or peruse quotes - everything is in front of you. You also get a full UK spec car with full manufacturer-backed warranty.

Virgin Cars said: 'A customer can have a car built to order whereas supermarkets trade off the stock they have in at that moment. And a key advantage with Virgin is the three-years '@ your service' package which provides customers with a door-to-door collection and delivery repair and servicing facility accessed through a single telephone number.'