Rover dealers left £25m out of pocket when the manufacturer called in the administrators last month have failed to agree whether to accept a rescue package offered by HBOS's car finance arm, Capital Bank.

More than 400 dealer representatives attended a four-hour meeting at the Heritage Motor Centre at Gaydon, Warwickshire, yesterday but said they wanted further time to examine its terms.

Capital Bank, which owns most of the 15,000 unsold cars - worth around £165m - sitting on Rover dealer forecourts, has offered a £25m olive branch to help clear them.

Prior to its collapse last month, Rover gave dealers a 20% discount on cars to help sales. Without the subsidy, dealers faced the prospect of trying to sell MGs and Rovers at full price.

Capital is now offering to write off a figure believed to be around 15% in a bid to get sales moving again.

Most dealers were supplied cars on terms of 180 days - Capital fears those unable to sell their stock will be forced into financial difficulties themselves, and will default on payments.

Richard Cort, the chairman of the Rover dealers association, described the meeting as "very constructive" but said nothing concrete had been agreed.

The dealers have put in place a warranty scheme to back future sales, he said.