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Zopa to help drivers cut down the cost of car ownership

19th May 2016 Print

Consumer loans provider Zopa, has launched a new car refinancing service to help drivers get a better deal on their cars. Zopa Car ReFi will help drivers with existing car finance agreements save money by swapping out existing more expensive agreements for a lower cost secured loan from Zopa.

Similar to refinancing a mortgage, Zopa Car ReFi will allow consumers to pay off their more expensive car finance deals with a better value, flexible and lower cost agreement from Zopa. In line with Zopa’s values of simplicity, fairness and transparency, users will be able to get a free instant estimate on how much they can save through an online personalised quote.  Getting this estimate will not impact their credit score.

Zopa is bringing its usual customer-first approach to car finance, putting consumers at the heart of the service.  Zopa’s user research shows that customers often do not shop for the best deal while getting car finance, which is a huge market worth over £12bn in new agreements every year for used cars alone. Customers care more about simply getting the car than the finance option offered. Zopa is now able to offer consumers the ability to compare their existing financing arrangement in a simple and convenient way, so even if they bought their car months or even years earlier, they could still save money today.

By offering an fast online decision process with a personalised estimate, Zopa aims to make refinancing a car loan simple, quick, and fair, saving customers money and hassle.

A unique aspect of this service is that Zopa will only provide an estimate if it beats the customer’s existing car finance agreement, meaning that each personalised quote offered will genuinely save consumers money on their car.

Additionally, Zopa will directly pay off the customer’s existing finance provider directly, meaning that the customer doesn’t have to manage the switching process, creating a stress free switch and save.  

Loans will range from £1,000-£25,000 over 1-5 years and will be secured against vehicles up to 10 years old. Ownership of the vehicle remains with Zopa’s lenders until the final payment, when it transfers to the customer.

Jaidev Janardana, Zopa CEO said, “Car loans are the most popular reason for taking a loan from Zopa and by introducing Zopa Car ReFi we can help thousands of people with existing car finance agreements drive down the cost of car ownership and save money by switching to Zopa. We’re disrupting the car finance market in a positive way by taking our award-winning, highly trusted customer service and combining it with Zopa’s innovative technology to offer a UK first. We are excited to introduce Zopa to lots more people as we believe we offer better value to consumers when it comes to their finances. In launching Zopa Car ReFi, we’re enabling British drivers to save money on their cars and give them more financial control over how they pay for it.”