Tesco Bank partners with Zopa to offer online car financing to millions of UK drivers
27 October 2021
- Zopa and Tesco Bank’s car finance product now available online at ClearScore marketplace
- Zopa’s Hire Purchase loan gives eligible consumers access to a pre-approved, guaranteed rate in as little as three minutes
- Partnership takes the guesswork out of buying a car and introduces more choice for millions of car buyers
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 roads1 and between seven and eight million used cars sold every year in the UK2, 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
Launched in 2005, digital Zopa is on a mission to change the way financial services are done.
In June 2020, Zopa was awarded its full banking license. Using its 16 years of tech know-how, customer understanding and money expertise as a pioneering peer-to-peer lender, Zopa is creating simple, fair and honest financial products that work better for customers through its bank. In less than six months, Zopa fully launched its Fixed Term Savings accounts and a credit card.
Over the last 16 years, Zopa has provided unsecured loans, car finance and investment products to UK consumers. It has helped more than half a million customers get the most from their money and approved over £6bn in personal loans. In that time, it’s been named Moneynet’s Online Savings Provider for 2021, voted the British Bank Awards’ Best Personal Loan Provider four years in a row and was Moneyfacts’ Personal Loan Provider of the Year for 2020 – the sixth time it’s won the award. It also won Best Credit Card Provider 2021 at the British Bank Awards.
Zopa Bank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
About Tesco Bank
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Over 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank: Stuart.firstname.lastname@example.org