Tesco Bank partners with Zopa to offer online car financing

By Joy Dumasia

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 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 these car financing offers. 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.

Before selecting the deal that works for them, customers visit the credit marketplace ClearScore and provide details on how much they would like to borrow. 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.”

Recently, IBS Intelligence reported that Tesco Bank had announced the appointment of Gary Duggan to the roles of interim Chief Executive Officer, Tesco Underwriting, and interim Chief Insurance Officer, Tesco Bank.