Tesco Bank partners Zopa for car financing

Tesco Bank is partnering with digital bank Zopa to offer online car financing to UK drivers.

The two banks say they can offer hire purchase finance online in as “little as three minutes”.

Zopa says it currently serves half a million customers and is currently lending over £100 million per year in car hire purchase finance. The company secured a full banking license last year.

Potential car buyers can get access to “pre-approved, guaranteed rates” before stepping foot onto the forecourt for a test drive of their first-choice car.

Customers 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 has no impact on their credit profile.

All the details are handled by Zopa, which also carries out background checks on the vehicle and the car dealer.

“We want to help those customers where a Tesco Bank personal loan doesn’t work for them, to find great value car finance options,” said Sigga Sigurdardottir, chief customer officer at Tesco Bank. “This proposition means customers can buy their car with ease and confidence.”

Tim Waterman, chief commercial officer at Zopa, added: “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.”

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