Zopa becomes first lender to offer pre-approved PCP deals
Zopa Bank has become the first lender to offer pre-approved personal contract purchase (PCP) deals online.
The former peer-to-peer lender will allow consumers to access a fully-guaranteed PCP offer without impacting their credit file.
“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?” Zopa said in a blog on the company website.
“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 PCP deals online.”
Read more: Zopa eyes acquisitions in different sectors
The PCP deals will be available via price comparison websites such as Motiv, MoneySuperMarket, ClearScore and Experian, and direct to consumers on Zopa’s website from early 2023.
PCP deals account for approximately three quarters of new car finance agreements. They allow customers to purchase a newer car by making monthly payments, with the option to either buy the car outright or return it at the end of the term.
Last year, Zopa rolled out its online hire purchase car finance product to Tesco Bank customers, offering potential car buyers the opportunity to access pre-approved, guaranteed rates.
“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,” added Zopa.
Read more: P2P investing stands out in record year for alternatives