It takes minutes
Just tell us a few details about yourself and the car you’d like to refinance. We’ll track down the deals you’re eligible for. And we’ll flag monthly repayments.
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.
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.
You may get lower monthly payments compared to your existing deal
You may get a lower APR too
You only need to switch if the refinance offer is better for your circumstances
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
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 & 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 will also have an impact. If interests rates have changed since you took out your initial agreement that will have an impact on the APR that lenders can offer you.
You can use our free service to find out if you are eligible to refinance with no impact on your credit score.
If you have a finance deal on your car you won’t necessarily need to stick with this until the end of the term. It might be possible to pay off a lump sum with cash, borrow money to pay off a PCP balloon payment or refinance to a lower interest rate on a HP deal or car loan. The options available will depend on the deal you signed up to, your personal circumstances and credit score."
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.
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.
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.
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.
When you're looking to refinance a car you'll typically be asked to provide...
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
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.
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.
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