Zopa Bank moves car purchasing online with industry-first PCP offering on digital channels
We’re all used to being able to manage our lives online, whether it’s finding somewhere to live, booking a holiday, changing our utility providers – so why should buying a car be any different?
Buying a car is a dream for a lot of people, and from today Zopa Bank will make that journey easier for customers, becoming the first lender to offer pre-approved Personal Contract Purchase (PCP) deals online.
This launch will ensure consumers can access a fully guaranteed PCP offer without impacting their credit file. This will expand the choice, transparency, and flexibility in how people access car finance (and saving people a lot of time!).
Zopa's PCP product will be available online to consumers this year across a number of leading price comparison sites such as Motiv, MoneySuperMarket, ClearScore and Experian, and direct to consumers on Zopa’s website from early 2023.
What is PCP?
Personal Contract Purchase (PCP) deals are one of the most popular car finance options for consumers, accounting for some three quarters of new car finance agreements. Its benefits include:
Offering customers a way to purchase a newer car with affordable monthly repayments
Giving greater flexibility at the end of the term compared to other car financing options
At the end of the term a driver can either make a payment to buy the car outright or they can return the car. If they return the car, they have the option to take out a fresh loan on a different car as desired.
Historically, potential car buyers have had to visit a dealership or talk to a broker to access a PCP deal, but Zopa’s PCP launch will create more access and certainty for consumers moving the process online.
Now, potential car buyers can access pre-approved, guaranteed rates on PCP finance at a few taps of their phone, giving them transparency on their deal and the certainty that they can borrow the cost of their chosen vehicle before stepping foot on the forecourt for a test drive.
**How is PCP different with Zopa? **
By financing cars directly with Zopa, customers can access a fair deal and a competitive rate, with no hidden costs.
They go through the application process at their own pace online without pressure, ensuring they can take time to clearly understand the terms of the deal before agreeing.
Zopa’s application process takes away the hassle of buying a car. Once approved, Zopa speaks to the dealership on the customer’s behalf and pays them directly, meaning the customer can just focus on taking their new car out for a spin.
Zopa’s new PCP product complements its existing car finance offerings that include hire purchase and car loans, providing more and better choice adapted to individual circumstances.
