Vehicle refinancing replaces an existing finance balance with a new agreement. It may change the term or monthly payment, but only makes sense when the complete new cost and risks suit your circumstances.
How it works
- Ask the current lender for a settlement figure.
- Compare that figure with the vehicle value and any new offer.
- A new lender assesses you, the vehicle and the balance.
- If accepted, the new finance settles the old agreement.
What to check before you apply
- Early settlement charges or negative equity.
- The new APR, term and total payable.
- Whether a longer term adds interest.
- Vehicle age and mileage limits.
A realistic note
Reducing the monthly payment by extending the term can cost more overall and keep the vehicle tied to finance for longer.
Frequently asked questions
Can I refinance with negative equity?
Options may be limited if settlement is higher than the car's value.
Will refinancing affect my credit file?
A lender usually completes a hard credit search before a final decision.
Can I refinance a PCP final payment?
Some lenders offer this, subject to vehicle and affordability criteria.
Important: We Do Car Finance is a credit-broking service operated by Sandhurst Associates Limited. We are not a lender. Finance is subject to status, affordability and lender criteria. Acceptance is never guaranteed.