Car Dealer revealed the news that Tesco had partnered with Carsite to create the service this time last year.
And in November 2011 the service won the car supermarket category in the Car Dealer Ewards.
But one year on the supermarket firm has decided to close the operation.
A statement on its website read: ‘We started Tesco Cars in good faith and we always aim to do a good job for customers.
‘However, following a review of the business model, we and Carsite, our partner, have decided that we cannot offer customers a satisfactory range of vehicles and as a result, have decided it is right to close the business.’
Customers are being told to contact Tesco Cars’ customer services hotline for further information, and, if Tesco Cars are unable to fulfil customers’ orders, they will refund their deposits in full.
The business started trading in April 2011 and allowed customers to find their car online, secure it with a £99 deposit, then receive a full RAC report with video and photo gallery. If the customer was happy they could collect it or have it delivered to their home for just £149.