Zopa Bank is one of the most recognised names among the UK’s modern digital banks. Founded in 2005, it began as a peer-to-peer lending platform, a new idea that allowed people to lend and borrow directly. Over time, Zopa grew into a fully regulated UK bank, authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority.
Zopa’s transformation from a peer-to-peer platform into a bank led to the creation of Zopa Car Finance — a product suite designed to help drivers across the UK finance vehicles through clear and fair agreements.
Since gaining its full banking licence in 2020, Zopa has offered a range of lending products, including Hire Purchase, Personal Contract Purchase, and an Unsecured Car Loan option. These products are distributed both directly and through approved dealerships.
Each finance type is a secured-loan structure, meaning the vehicle acts as security until the final payment is made. This ensures responsible lending and protects both the driver and the lender.
Zopa’s services are designed for transparency and convenience. Drivers can check eligibility, upload documents, and track progress online — with decisions often confirmed within minutes. Their commitment to digital clarity reflects why Zopa Bank remains one of the most trusted names in car finance today.
What Zopa offers for our clients
Zopa’s car-finance suite gives drivers flexible ways to spread the cost of a new or used vehicle. Each agreement type offers distinct features suited to different driving and ownership preferences.
1. Hire Purchase
HP is the traditional route for drivers who want to own the car outright at the end of the term.
- It’s a secured-loan structure, where the lender holds legal title until the final payment.
- A deposit requirement may apply depending on the agreement.
- Zopa’s Representative APR varies with credit profile and loan term.
- Vehicle age and mileage limits ensure the car retains suitable value over the contract.
After the final instalment, ownership transfers to the customer. This product is ideal for those who prefer stability and clear end-of-term ownership.
2. Personal Contract Purchase
PCP offers lower monthly payments and greater flexibility.
- Like HP, it operates as a secured-loan structure, with the lender holding title until settlement.
- Customers can choose to make an Optional Final Payment to own the car, hand it back, or part-exchange it.
- PCP eligibility depends on vehicle age and mileage limits and usually requires an approved dealership.
- The Representative APR is displayed clearly before signing.
This structure suits drivers who enjoy upgrading their cars every few years.
3. Unsecured Car Loan
Zopa also provides an unsecured car loan for those who prefer flexibility. It can fund vehicles purchased from dealers or private sellers.
- The eligibility criteria depend on income, affordability, and credit profile rather than vehicle security.
- There’s no deposit requirement, and borrowers own the car immediately after purchase.
Regulation and responsibility
All of Zopa’s lending activity is regulated by the FCA and PRA. The wider industry is currently undergoing review through the FCA car finance review, which examines practices such as the Discretionary Commission Arrangement used by some lenders in the past.
Zopa has publicly stated that its car-finance lending volumes from 2023–2024 were modest and that it expects no significant impact from this review.
The review includes a complaint-response window, during which customers can raise cases via the Financial Ombudsman Service if needed. A pending UK Supreme Court commission ruling could lead to an updated FCA redress scheme.
Why it matters for Carplus clients
Zopa remains a lender that prioritises clarity, compliance, and customer care. Its products use transparent pricing metrics, consistent terms, and simple digital access.
For Carplus clients, Zopa represents the modern model of car finance — fully regulated, responsibly structured, and delivered through accessible distribution channels. Whether through HP, PCP, or an unsecured loan, Zopa Bank continues to combine bank-level trust with digital efficiency, helping drivers across the UK finance their next car with confidence.
