ZOPA is readying to launch its secured car finance product as a direct offer on its website, as it looks to expand this segment of the business.
The world’s oldest peer-to-peer lender has offered car finance as part of its unsecured personal loan service since launching in 2005.
It entered the secured car finance space in December 2017, offering a hire purchase product purely via brokers. It widened its distribution to comparison sites such as Confused.com and ClearScore in November 2018, and it will soon be available as a direct offer on Zopa’s website and on dealers’ showrooms and websites.
“Historically, a third of our personal loans have been used to purchase a car,” a Zopa spokesperson told Peer2Peer Finance News via email.
“After announcing our ambitions to launch a bank back in 2016, we also looked at other industries and saw how dissatisfied customers were when applying for a car finance deal. Currently, a lot of the market seems to be focused on servicing the dealers.
“We want to put the customer back at the centre of the industry, give them a great customer experience that they deserve and make it possible for customers to choose whatever channel they want to make sure they are picking the best deal that suits them.”
Zopa’s technology determines an applicant’s eligibility for finance in less than eight seconds before offering customised services and solutions on a pre-approval basis.