Are there set-up fees, early repayment fees or late payment fees?

Currently, there’s no charge for paying off your hire purchase early. However, if you took out your loan after September 7th 2022, you’ll be subject to early repayment charges once they’re introduced later this year. There are no charges if you miss a payment. Although if you do miss a repayment, it’ll be marked on your credit file which may affect your ability to gain credit in the future.

How do I close my Zopa loan or car finance?

To close your loan or car finance, you’ll need to pay off your balance in full. If you’ve already done this, put your feet up, we’ll take care of the rest for you! If you have an outstanding balance to clear, here’s how to pay off your loan or car finance. Please be aware, this process only closes your loan or car finance – not your Zopa account. Your Zopa log in details and marketing preferences won’t be affected. Also, if you have another Zopa product, like a credit card, this won’t be impacted either. If you do want to close your Zopa account completely, check out this FAQ.

Am I responsible for MOT tests and servicing the car if I have a PCP or HP?

If the car is over 3 years old, you need to have it MOT-checked every year to make sure it’s safe to drive. You should also service the car regularly according to the manufacturer guidelines to keep it in good condition and avoid potential charges if you return the car.

Can I make extra repayments towards my car finance?

You can pay more towards your hire purchase (HP) car finance, at any time. The easiest way to pay more is by using the Zopa app. Select your car finance, then ‘Make an extra payment’ and follow the steps. We’ll take the money through your usual Direct Debit. Things to keep in mind Paying more will reduce your car finance amount, the amount of interest you pay and the cost of your monthly repayments. Your car finance term will stay the same. You’ll need to pay at least £10. If one of your regular repayments is going through, you’ll need to wait a few days until that’s cleared before making an extra repayment.

Can I change my car while the finance is up and running?

No, you can’t change your car once you’ve signed your agreement, as the agreement is linked to the specific car you took out the finance for. However, see here for more information on selling or part-exchanging the car.

How do I end my car finance agreement early?

If you’d like to end your car finance agreement early, you have a few options: 1. Paying off your loan early If you'd like to keep the car, you can pay off your loan early. If you have a hire purchase agreement, you can do this either through our website or app, or by getting in touch with us. You can follow the steps here to pay off your loan via the Zopa app. If you have a personal contract purchase agreement, please contact us if you want to pay off your loan early. 2. Returning the car to us If you no longer want to keep the car, you have a couple of options – voluntary termination (VT) and voluntary surrender (VS). You can email us at repayments@zopa.com and let us know which option you want to choose. Keep in mind that whichever option you choose, there are fees for collecting, inspecting and selling the car, which we'll add to your account balance. Voluntary termination Under Section 99 of the Consumer Credit Act 1974, you have the right to voluntarily terminate your car finance agreement at any time. This means you return the car to us, and we’ll sell it at auction. With the voluntary termination option, it’s important to note that: You’ll need to repay 50% of the total amount payable. The total amount payable is the amount you borrowed, plus interest and fees. You’ll also need to pay for any damages to the car beyond normal wear and tear. If you have a personal contract purchase agreement, you’ll also be charged if you go over your mileage limit. Voluntary surrender Voluntary surrender involves you returning the car to us, we’ll then sell it at auction and deduct the sale price of the car from your loan balance, minus any admin costs such as auction fees. You’ll still need to repay any remaining balance on your loan. If your car is in good condition and could be sold for a high price, this might be an option to explore as this could greatly reduce what you owe. Please note: if you choose the voluntary surrender option, it will be recorded in your credit report and may impact your ability to obtain credit in the future.

What does pre-approved for car finance mean?

Being pre-approved for our car finance means that we’re confident we can say “yes” to your application based on the info you’ve given – we just need to run some final ID and fraud checks. While you're pre-approved, you can customise your finance term and amount with no impact on your credit score, as your car finance isn’t final until you’ve signed your agreement. Though it’s worth noting that we can’t guarantee you’ll be pre-approved for a new amount if it’s more than you originally applied for.

Who pays the dealership?

Once you’ve signed your agreement online, we’ll pay the dealership, so you’re free to hit the road. You’ll need to pay the car’s deposit and any extras to the dealership directly.

What background checks does Zopa run?

We’ll need to run some free background checks on the car you like. After all, buying a used car can be daunting, especially as it’s often hard to tell whether you’re getting a good deal. We’ll check that the car isn’t stolen, imported, scrapped or previously involved in an accident. If any of these fail, we’ll let you know so you can find a new car. We’ll also check the dealership to make sure they’re reputable and trustworthy.

For hire purchase Technically, we’ll own the car until you’ve paid off your hire purchase finance in full, but there’s no need to feel like it isn’t yours. You'll be the registered keeper of the car and there is no limit on how many miles you drive. Plus, once you’ve made your final repayment, ownership is automatically transferred to you. For personal contract purchase (PCP) We’ll own the car unless you choose to make the optional final payment at the end of your agreement. After that point, you’d own the car. If you don’t make the optional final payment and want to return the car to us at the end of your agreement, charges might be applied if you’ve gone over your agreed mileage limit and/or the car has been damaged beyond normal wear and tear.

I want to sell my car - what can I do?

Before selling your car privately, your existing finance agreement with us will have to be settled, as Zopa will still own the car until that time. If you’re part-exchanging the car, the dealer will often pay us directly, but you’ll be liable for the finance until the loan is closed. Please make sure that the dealer has the correct bank details and reference. Feel free to contact us to get these details. If you’re in financial difficulty and want to sell the car to reduce your debt, please contact us by going to zopa.com/help.

You certainly can. But it’s important to note that as the finance is registered in your name, you’ll be liable for the finance until it has been settled. Contact us to request a finance settlement figure – keep in mind that we can only give this figure to the account holder. Make sure that the dealership has the correct bank account details and reference. You can find these details by contacting our customer service team.

Can someone other than me drive the car?

Yes, they can, providing they’re insured to drive it. Don’t forget, no matter who is driving the car, the person whose name is on the contract is liable for the car finance.

Can I take my car abroad?

If you’re looking to take the car out of the UK for more than 28 days, it’s really important to contact us before you go, as you’ll need written consent. You’ll also need AA five-star insurance or equivalent to take the car out of the UK to any European country.

What should I do if I’m having problems with my car?

Please get in touch with us using the details here and a member of our customer service team will look into ways we might be able to help.

No, we currently don’t offer car refinancing options at Zopa.

What happens if I don’t know the vehicle registration number?

We’ll need a registration plate for your application, so it’s best to call your dealership to get this. Your quote stays valid for 60 days, so you’ve got plenty of time to find your dream car and you can check as many cars as you like, with no impact on your credit score.

What's the difference between an unsecured car loan, hire purchase and personal contract purchase car finance?

With unsecured personal loans, you can use the money you borrow from us to buy and own the car outright. Check out your rate on our loans page. For hire purchase (HP) and personal contract purchase (PCP), we pay the dealership directly and the loan is secured against the car. This means that Zopa own the car until the loan has been paid off. We run checks on your car to ensure it’s in good condition and can support you if you need help finding a car. With PCP, you typically have lower monthly payments than HP and personal loans. This is because you don’t have to pay the full value of the car unless you’d like to own it. At the end of the PCP agreement, you can choose to return the car, part exchange it for a new one, or pay an optional final payment to own the car outright. Please note that you may need to put down a deposit at the beginning of an HP or PCP agreement.

Why do you complete a check on the dealership?

We want to ensure that you have the smoothest journey and drive away in your car happy. That’s why we complete additional checks on dealerships to make sure they're up to our standards and are reliable and reputable companies.

What is personal contract purchase (PCP)?

A personal contract purchase (PCP) is a flexible way to finance a car. It’s a loan that typically offers lower monthly payments than other financing options like personal loans or hire purchases. This is because you don’t have to pay the full value of the car unless you’d like to own it. At the end of the agreement, you’ll only own the car if you make an optional final payment, also often called a balloon payment. Similar to hire purchases, even if you choose to return the car, you’ll pay interest on the full value of the car minus your deposit. We'll agree a mileage limit with you based on how many miles you expect to drive for the duration of the PCP agreement. If you go over the limit, you’ll need to pay an excess mileage fee when the agreement ends. You’ll have three options to consider at the end of the agreement, which is helpful if your circumstances change: Pay the final payment to own the car outright Part exchange the car for a new one with a new PCP agreement Hand the car back to us Example You’d like to finance a £10,000 car over three years with PCP. You plan to drive a total of 30,000 miles over the course of the agreement, so Zopa guarantees that the car will be worth at least £4,000 after 3 years and sets this as the optional final payment. You decide to put down a 10% deposit (£1,000) and finance the rest (£9,000). Since it's been agreed that the car will be worth £4,000 at the end, you’re only required to repay £5,000 (plus the interest on the entire £9,000) over the 3-year period. At the end of the agreement, if you’d like to keep the car you can pay the optional final payment of £4,000. If you don’t want to keep the car, you can hand it back and take out a new PCP agreement, or just hand it back and take no further action.

What cars can I get with PCP finance?

We accept most cars, as long as it’s: A used car Bought through an approved dealership No more than 5 years old Has under 70,000 miles at the start of the agreement Done no more than 150,000 miles at the end of the agreement (To work this out, take the mileage on the car at the start of the agreement and add on your agreed total mileage) Not a commercial vehicle If you’re unsure whether your car fits our criteria, you can share the car’s registration number and we’ll check for you during the application.

How do I return my car at the end of a PCP agreement?

At the beginning of your personal contract purchase (PCP) agreement, we’ll outline the options you have when your contract ends. We’ll also send you regular reminders to make sure you understand your options and know what to do at the end of your agreement. If you decide to return the car to us, please get in touch with our support team using the details here to arrange the return. Once we’ve received the car, our logistics partner will inspect its condition and check the mileage. If you’ve stuck to the agreed mileage limit and the car’s in good condition, we’ll contact you to confirm the end of your PCP agreement. If you’ve gone over the agreed mileage limit, we’ll apply a charge per excess miles. You’ll also need to pay for any damage that falls outside of the British Vehicle Rental and Leasing Association (BVRLA) Fair Wear and Tear guidelines.

Can I change my repayment date for PCP finance?

Yes, you can, but in rare instances this could incur a 'depreciation charge'. We’ll apply this charge if the car’s value is lower than our estimate because you return it later than the original schedule. You can check out this guide to find out more about how to change your personal contract purchase (PCP) repayment date and what to expect next.

Why does my term have an extra month?

The optional final payment will be automatically collected in the extra month. This means that if you'd like to own and keep the car you don’t need to worry about getting in touch with us. We’ll send reminder emails months ahead of the end of the agreement to confirm whether you’d like to go for a different option. If you plan to return the car to us, the extra month should give you enough time to hand the car back and settle any excess charges should there be any. For example, a 49-month term consists of: 48 months of regular payments 1 month where the optional final payment can be made If you decide to return the car to us at the end of your agreement, just let us know.

What happens if I go over my agreed mileage?

At the beginning of your personal contract purchase (PCP) contract, you'll need to agree to a mileage limit over the term of the agreement. The higher your agreed mileage limit, the higher your monthly payments. This is because a higher-mileage car will likely be worth less when it’s sold, which increases the difference in value between the car’s price at the start of the agreement and its estimated value at the end – a key factor in determining your monthly payments. On the flip side, if you set your mileage limit too low and go over it, you could end up with excess mileage fees when you hand the car back to us at the end of your agreement. This is why it’s important to work out your annual mileage as it’ll help you pick a reasonable mileage limit and avoid excess mileage charges. Keep in mind that the mileage is only checked at the end of your agreement and not each year. This means that you can go over the limit in one year if you make up for it by travelling fewer miles in subsequent years.

What are my options at the end of a PCP agreement?

At the end of your personal contract purchase (PCP) agreement with Zopa, you’ll have three options to choose from: Buy the car – If you want to keep the car and become its owner, you’ll need to pay the optional final payment. Return the car to us – If you no longer need a car, simply hand it back to us after you’ve made all your monthly payments. You’ll need to make sure that the car doesn’t have any damage beyond normal wear and tear, and that you’ve stuck to your agreed mileage limit. Otherwise, you’ll likely face additional charges. Part exchange the car for a new one – If you want a fresh set of wheels, you can return the car and start a new PCP agreement with another car. If the car’s worth more than the optional final payment, you’ll have some extra money that you can put towards the deposit on your next car.

What’s the optional final payment?

The optional final payment is made at the end of a personal contract purchase (PCP) finance agreement in order to own the car. It's sometimes referred to as the balloon payment or the guaranteed future value (GFV).

Does Hire Purchase finance cover all cars?

We accept most cars, as long as it’s: A used car Bought through a dealership No more than 10 years old Not a commercial vehicle Got no more than 120,000 miles on the clock If you’re not sure whether your car fits our criteria, just enter the car’s registration number and we’ll check it for you.

When do you complete a hard search on my credit file?

Zopa will conduct a hard search on your credit file once you complete your e-sign. The initial quote you receive will be a soft search, leaving no mark on your credit file.

Can I add a personalised number plate to my car?

Yes, you can! Though it’s important to note that you can’t make any permanent modifications to the car.

Is there a balloon payment?

No. A balloon payment is a lump sum you’ll pay if you want to keep the car at the end of a personal contract purchase (PCP). As this is a Hire Purchase (HP) finance, once you’ve made your final repayment the car is all yours and there’s nothing more to pay.

How soon could I be driving away in my new car?

Once your Hire Purchase finance is approved and you’ve chosen a car, you could be on the road in as little as one working day.

What is hire purchase finance?

When you choose Hire Purchase finance with Zopa, it's secured against the car. This means we own the car until you make your final repayment and after that, it’s yours. However, there’s no need to feel like it isn’t yours. We won’t put a limit on how many miles you can drive in your car. It’s important to note that if you default on your finance, we can repossess and then sell the car, subject to meeting the conditions detailed in the Consumer Credit Act.