Fix your resettlement figure
Request your settlement figure from your current lender if you haven't done so already. This will then help finalise the details of your refinance deal. You do not need your existing lenders permission to switch deals.
Car refinancing
Compare car refinancing deals.
Car Finance 247 Limited is credit broker, not a lender. The rate you are offered will depend on your individual circumstances.
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Representative APR of 11.9%.
What is car refinancing?
Refinancing involves getting a new finance agreement and using this to repay your existing agreement. If you have taken out finance to purchase your car, you may be able to refinance onto a different deal.
There are various reasons you may do this, such as lowering the interest rate, the monthly payment, or helping to finance a balloon payment if you have a Personal Contract Purchase (PCP) deal on your existing car.
Refinancing may benefit you if your credit score has improved or you didn't shop around for your original deal. You may also benefit if your circumstances have changed since you took out your original car finance deal.
See if refinancing could save you money
Use our brand new calculator to see if you could save money by refinancing your car
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Who is Car Finance 247?
Car Finance 247 is the UKs largest online car finance platform*, seamlessly connecting car buyers, sellers and finance providers to make car finance simple, transparent and accessible.
With access to over 270 finance products and a network of more than 3,500 trusted dealers, they match eligible customers with a personalised finance offer based on their individual circumstances.
Join over 500,000 customers who have trusted Car Finance 247 to help them get on the road.
*The UK's largest online car finance platform by unique users to the website. Based on Similar Web data – 1,184,130 to Car Finance 247 vs. 658,656 for nearest competitor. December 2024 to May 2025.
How does car refinancing work?
Here's a snapshot of the procedure when you refinance a car purchase...
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Provide information
Fill in the requisite forms, providing any final information and undergoing any checks on yourself and your financial record that the new lender stipulates.
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Undergo vehicle checks
If refinancing onto a Hire Purchase agreement, complete any checks on the vehicle the lender requires. E.g: to confirm condition and ownership
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Dot the i's
Complete any paperwork that's required to take out the new agreement. Done that? You're now good to go.
Will refinancing my car affect my credit score?
After the lender carries out a credit check, your credit score may drop slightly. That’s the case whenever you apply for any form of credit.
But as long as you adhere to the terms of your car refinancing deal, the negative impact on your credit score is temporary. Provided you kept up with repayments on your original car finance deal and maintain repayments on your refinanced loan, your credit score is not in danger and should improve over time.
Better still, if your payment record with the original lender is good, you should have a better chance of getting a more appealing rate when refinancing.
What are the pros and cons of car refinancing?
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Pros
You may get lower monthly payments compared to your existing deal
You may save money by getting a lower APR too
You only need to switch if the refinance offer is better for your circumstances
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Cons
Not everyone will be offered a better deal than their existing finance
Finance is secured on the car so it’ll be repossessed if you miss repayments
Your rights may change compared to your existing agreement
Our expert says…
Can I get a better deal by refinancing?
'Whether you can get a better deal by refinancing will be affected by many things. Not least the existing deal you’re on, the APR and the monthly payments that you pay.
'How your credit score and personal circumstances have changed since you took out your finance will also have an impact. If your score has improved, you’re more likely to be offered better rates by finance companies.
'Market conditions are also a factor. If interest rates have changed since you took out your initial agreement that will have an impact on the APR that lenders can offer you.
Kara Gammell Personal Finance & Insurance Expert
Experience a simpler, smarter way to get car finance with MoneySuperMarket and our partner Car Finance 247
Can I refinance my car if I have bad credit?
It's fair to say that refinancing a car can make it trickier if your credit rating is impaired. But you may still be able to.
The lenders who may be able to help you are those that specialise in bad credit car loans. As you might expect, though, refinancing deals for people with bad credit will usually have a comparatively high interest rate.
Can I refinance my car if it's leased?
Car leasing doesn't operate like a loan. So you won't be able to refinance your arrangement with the leasing company to lower your payments or spread the cost.
If you're struggling to make car-lease payments, you may instead opt to end the lease or transfer your car lease to a third party.
What documents do I need to refinance a car?
When you're looking to refinance a car you'll typically be asked to provide...
Driver's license
Vehicle registration
Proof of income (payslips, for instance)
Proof of insurance (your policy documents)
Proof of residence (a utility bill, for example)
The 10-day payoff statement from your lender
Will my monthly payments decrease if I refinance my car?
If you're able to refinance your car with a better rate or extend your loan period, you could certainly end up with lower monthly repayments.
If your credit rating has improved since you took out the original loan, you're giving yourself a good chance of being able to refinance and cut your monthly outgoings.
Can I refinance my car with the same lender?
It's fair to say that the majority of people who refinance their car loan do so with another lender. But it's not mandatory.
Your existing lender may well be able to arrange a refinancing deal for you too and still cut your monthly payments.
To find out you can either contact your lender directly, or get in touch with a car loan broker who will handle the negotiation for you.
What is PCP?
PCP is simply a means of financing a new or used car. It works much like a long-term rental, and allows you to drive the car until an end date agreed in a contract.
PCP has found favour because it generally comes in cheaper than other ways of financing a car. So new and expensive cars are more affordable.
How does MoneySuperMarket make money?
We get paid by the companies we work with, but the payment we get doesn’t have any bearing on the information we provide. We get paid in different ways, depending on the type of product or service you buy through us. Our goal is to search deals from as wide a range of companies as possible, but we only show results from our partner providers.
Our comparison service is, and will always be, free to use.
Why should I use a price comparison website?
One of the best ways to get the lowest prices and best deals on your household bills is to compare quotes from different companies. We do the work for you, comparing quotes side-by-side and giving you all the information you need so you can choose the right deal for your needs and your wallet.
Does MoneySuperMarket work with all the providers on the market?
No, not every company can be included in our service. This is because some companies don’t want their products included on comparison sites, and some decide that they would rather not pay a fee. There are also a few smaller providers who can struggle to cope with the volume of customers that can find their products if they appear on MoneySuperMarket.
Our goal is to search deals from as wide a range of companies as possible so that you can choose the deal that suits you.
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Learn more about car refinancing
Reviewed on 17 Aug 2026 by
Accurate as of August 2026
