Tesco Bank is partnering with digital bank Zopa to offer online car financing to millions of UK drivers.
The two banks have come together to offer Hire Purchase car finance online, helping customers find great value car finance in as little as three minutes. The partnership takes the guesswork out of buying a car by combining Tesco Bank’s brand strength and focus on helping customers to manage their money, with Zopa’s capabilities in building innovative digital finance products.
With over 40 million drivers on UK roads* and between seven and eight million used cars sold every year in the UK**, both banks believe there is a strong demand for this car financing offer. Potential car buyers get access to pre-approved, guaranteed rates, giving them the certainty that they can borrow the cost of their chosen vehicle before stepping foot on the forecourt for a test drive.
Customers simply visit credit marketplace ClearScore and provide details on how much they would like to borrow, before selecting the deal that works for them. The process is transparent and has no impact on their credit profile. All the details are handled by Zopa, who also carry out background checks on the vehicle and the car dealer.
Sigga Sigurdardottir, Chief Customer Officer at Tesco Bank, said: “We want to help those customers where a Tesco Bank personal loan doesn’t work for them to find more great value car finance options. That’s why we’re delighted to team up with Zopa to make this happen. At Tesco Bank, we’re committed to offering products and services which align with the needs of Tesco shoppers, and this proposition means customers can buy their car with ease and confidence.”
Tim Waterman, Chief Commercial Officer at Zopa, added: “Partnering with Tesco Bank is a proud moment for Zopa and our online car finance product. At a time when people want great value, fair financial products and a simple, intuitive experience, Zopa’s digital-first products and market expertise combined with Tesco Bank’s brand strength continues our mission to bring car financing into the twenty first century. By teaming up we’re making it easy for consumers who don’t yet know Zopa to access digitally native, industry leading products adapted to their needs, reaffirming our unwavering commitment to great customer experience.”
Zopa currently serves half a million customers and is currently lending over £100 million per year in car hire purchase finance. Tesco Bank helps more than 5 million customers manage their money a little better every day through banking, insurance and money services.
- DVLA driving licence data, July 2021 GB Driving Licence Data - data.gov.uk
** Society of Motor Manufacturers and Traders (SMMT) used car sales data Used Car Sales Data - SMMT quarterly data archive
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