Carzoopa Ltd in Totton ceases trading due to 'rising costs'

Carzoopa Ltd, based in Totton, has said it has had to fold due to the business becoming "unviable". 

Speaking to the Echo, Carzoopa owner, Lee O'Regan said the business "won't be reopening" and that rising prices meant the business could no longer trade. 

He added: "We have had to let many great staff members go as a result.

"All customers with cars on finance should contact their finance companies as per the instructions on the website who will be able to advise them if they have any issues."

READ MORE: Totton man left paying £570 a month for broken down Jaguar

In a statement on the firm's website, it says the company is now working with "minimal admin staff" after closing as of September 1. 

The news comes after the director said in the company's accounts for the year ending August 2021 that he has "a reasonable expectation that the company will continue in operational existence for the foreseeable future" despite the impact of Covid-19. 

Its accounts show rent and equipment cost the company £338,110 in 2021, more than £250,000 extra compared to 2020 when it cost £71,295.

It had £646,000 to be paid to creditors in 2021, down from £739,544 in 2020 including bank loans, trade creditors and tax.

Carzoopa based at The Mill House Centre, Commercial Road, also made an interest-free loan to Mr O’Regan, of £124,182 - with £305,335 in total owed.

Some customers told the Echo they have been left "in limbo" after needing their vehicles looked at.

Grant Harris. (Image: Newsquest.)

Grant Harris, 37, a gardener from Southampton, bought a Mitsubishi Outlander from Carzoopa more than three months ago. 

But he said he has only used the vehicle for around two weeks in that period as not long after the got the car, it broke down and had to go in for repairs.

So far he has paid £872 on the finance deal, with no sign of the vehicle being returned to him since the company stopped operating. 

He is now using a courtesy car which he worries may be repossessed if the business is no longer trading. 

He said: "It’s been an absolute nightmare. I've been trying to get hold of [Carzoopa] for a whole week. 

"It’s been stressful. Worrying whether my wife's going to be ill or if someone’s going to knock the door and say they need the car.

"I’d rather just say to them, take the car back I don’t want it. I’ll go somewhere else". 

It comes just weeks after another customer, 50-year-old Jason James, of Commercial Road, said he had been left in a similar position with his Jaguar F-Pace.

He has since been given a new finance deal on a different car.

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