Updated

The world’s smallest car dealership has been unveiled – in an iconic London red phonebox.

Peugeot has converted the phonebox into an online showroom with customers able to browse, configure, finance and order a new car – just like you would at a traditional forecourt.

And it officially opens on September 12 with The Sun Online given a sneak peek inside a week before.

The red phonebox in Russell Square is just 0.8m² and will be open between 7am and midnight every day until the end of the month.

It’s fitted with a specially designed desk that allows visitors to browse a miniature forecourt thanks to small scale models.

Once you’ve settled on your choice you can use the iPad to spec the car with options like added tech or alloy wheels.

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You can then even agree a trade-in price on your existing motor, organise finance and pick a delivery date for your new car direct to your door.

The tiny dealer uses Peugeot’s Order Online function which allows owners to order a new car completely remotely and never have to visit a traditional dealer.

That’s particularly handy as recent figures from InsureTheGap suggest half of drivers hate going to a car showroom as they fear they’ll be ripped off.

David Peel, Peugeot managing director, said: “The world’s smallest dealership is a perfect example of how technology continues to change the way we research, view and purchase products.

“Not that many years ago, the process of buying a new car involved reading lots of printed literature and trawling around Dealerships.

“Now, despite a car being the second-largest purchase most people make in a lifetime, it can be done from anywhere – even from inside a phonebox.

“We recognise that the retail landscape is ever-changing and consumers like to have the freedom and flexibility that comes with browsing online, without the pressure of having to negotiate or make snap decisions.

“Order Online puts our customers firmly in the driving seat, allowing them to chop and change what they want and make a decision in their own time, in their own space.”