Are you feeling the pinch of your current car finance agreement, struggling with high monthly payments, or looking to save money? Car refinancing could be the solution you've been searching for. At Carplus, we're your trusted partner in the world of car finance, and we're here to tell you that refinancing your car loan has never been more accessible.

Must be between £3,000 to £50,000
Your monthly payment
Total charge of credit£0
Total amount payable£0
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Rates from 9.9% APR: the exact rate you will be offered will be based on your circumstances, subject to status. Representative example: borrowing £7,000 over 5 years with a representative APR of 21.9%, the annual interest rate of 21.9% (Fixed) and a deposit of £0, the amount payable would be £185.33 per month, with a total cost of credit of£4,119.81 and a total amount payable of £11,119.81. We look to find the best rate from our panel of lenders and will offer you the best deal that you're eligible for. We receive a fixed fee commission per finance agreement, or we receive a commission based on a percentage of the total amount of finance taken. This will not affect the interest rate offered or the total amount repayable. Our service is free.

Can you refinance a car?

Car refinancing is the process of replacing your existing car finance agreement with a new one that offers better terms and more favorable rates. If you find yourself unhappy with your existing car finance loan, whether it's due to high monthly payments, unfavourable interest rates, or the need for a longer repayment period, refinancing your car is a viable option.

At Carplus you can refinance your car loan to find better deals and regain control of their finances. It's our mission to ensure that you can enjoy your car without the financial burden that might be holding you back.

Why refinance a car?

Now that we've explored who can refinance and how to do it, let's delve into the reasons why you might want to refinance your car.

  • Lower Monthly Payments: By refinancing, you can often secure a lower interest rate, resulting in reduced monthly payments. This can significantly ease your financial burden.
  • Reduce Interest Rates: If you've noticed that interest rates have dropped since you initially financed your car, refinancing can help you take advantage of the more favorable rates available now.
  • Change Loan Terms: Whether you want to extend the loan term for more manageable payments or shorten it to pay off your car sooner, refinancing allows you to adjust the terms to your liking.

Our customers who have already got car finance!

  • High Acceptance Rate
  • Representative APR 21.9%
  • Rated excellent on Trustpilot

Refinance PCP: Personal Contract Purchase

If you're driving a car under a Personal Contract Purchase (PCP) agreement and want to refinance your car, you're in the right place. PCP agreements often come with a balloon payment at the end, which can be a financial burden. By refinancing your PCP, you can potentially avoid this final lump sum payment and secure a new deal with more manageable monthly repayments.

With Carplus, you can discover the advantages and considerations associated with PCP refinancing. We'll work with you to find a new finance agreement that suits your budget and financial goals.

Refinance HP: Hire Purchase

If your car is financed under a Hire Purchase (HP) agreement, you have the opportunity to refinance car loan and make your monthly payments more affordable. HP refinancing can be an excellent choice, but it's essential to be aware of any potential pitfalls. We'll guide you through the process and help you understand how to make HP refinancing work to your advantage.

Whether you have a PCP or HP agreement, Carplus is here to assist you every step of the way. We understand the intricacies of these agreements and can help you navigate the refinancing process with ease.

Refinance a car with bad credit

At Carplus, we believe that everyone deserves a chance to improve their financial situation, even those with less-than-perfect credit scores. If you're concerned about your credit history, we're here to assure you that car loan refinancing is still a possibility.

We specialize in helping customers with bad credit refinance their cars and find tailored solutions that meet their unique needs. We understand that life can throw financial curveballs, and we're here to help you get back on track.

How to refinance a car loan

Now that you're considering car refinancing, let's walk you through the process with Carplus as your trusted partner. We make the journey towards financial relief as smooth as possible.

  1. Research Lenders: Start by researching reputable lenders in the UK. Carplus is here to simplify this step, as we have established relationships with a wide network of trusted lenders.
  2. Gather Necessary Documents: You'll need documents such as your current car finance agreement, credit report, and proof of income. Carplus will guide you on what's required to ensure a smooth application process.
  3. Application Process: Carplus will assist you in navigating the application process. We'll connect you with lenders who can offer you the best refinancing terms based on your unique situation.
  4. Approval and New Loan: Once your application is approved, you'll receive a new loan agreement with more favorable terms. Carplus ensures that you understand all the details and terms before signing.
  5. Enjoy the Benefits: With your new car finance agreement in place, you can look forward to lower monthly payments and financial relief.

Improving your chances of approval

If you have a less-than-ideal credit score, there are steps you can take to improve your chances of approval for car refinancing. At Carplus, we'll provide you with expert guidance on how to enhance your credit rating and increase your likelihood of securing a better deal.

Remember, even with bad credit, refinancing can lead to lower monthly repayments and more favorable terms. Don't let your credit history hold you back from exploring your options with Carplus.

Why choose Carplus?

Carplus stands out as your trusted car finance broker for refinancing needs. Here's why you should choose us:

  • Expertise: Our team has years of experience in the car finance industry, and we're well-versed in the intricacies of car refinancing. We use our knowledge to your advantage.
  • Customer Service: We prioritize excellent customer service, ensuring that you have a smooth and stress-free experience throughout the refinancing process.
  • Exclusive Offers: Carplus often has exclusive offers and partnerships that can benefit our customers. We're committed to providing you with the best possible deals.

Car refinance FAQ

How long after getting a car loan can you refinance?

The timing for refinancing your car loan can vary, but here are some general guidelines:

  • Your first 60-90 Days: Some lenders may require you to wait at least 60-90 days after obtaining your initial car loan before you can refinance.
  • Your first 6 months: Many borrowers choose to wait at least six months before considering refinancing, allowing them to establish a payment history and improve their credit.
  • The last 2 years of your loan: Towards the end of your loan term, typically within the last two years, refinancing can be more common as your vehicle's value and your creditworthiness may improve.

What documents do I need to refinance a car?

  1. Driver's license
  2. Vehicle registration
  3. Proof of income
  4. Proof of insurance
  5. Proof of residence
  6. The 10-day payoff statement from your lender

How long does it take to refinance your car loan?

Having decided to refinance your car loan, get ready and put together all the documents because client preparedness is one of the factors that can greatly affect the speed of loan approval. On average, the process can take anywhere from a few days to a few weeks. Carplus aims to streamline the process, ensuring a quick and hassle-free experience for our customers.

How much does it cost to refinance my car?

The cost of refinancing your car can vary, but it typically involves fees such as loan arrangement fees, credit check fees, and possibly early settlement fees with your existing car finance provider. However, refinancing can often lead to savings in the long run by reducing your monthly payments and interest rates, ultimately making it a cost-effective choice.

How often can you refinance a car loan?

You can refinance your car loan, but the frequency may depend on your current car finance agreement and your specific financial situation. It's advisable to check your existing loan agreement for any restrictions. If you find yourself in a better financial position or interest rates drop, you can explore the option to refinance again. Carplus can assist you in determining when it's the right time for your unique circumstances.

How does refinancing a car loan affect your credit?

Refinancing a car loan can affect your credit in several ways. Initially, there may be a small negative impact due to a credit inquiry when applying for the new loan. However, as you make regular payments on the new loan and improve your credit file by demonstrating responsible financial behavior, your credit score may ultimately benefit. Refinancing can be a positive step towards better credit health if managed wisely.

Can I refinance my car with the same lender?

Yes, you can refinance your car with the same lender, but it's not always the best choice. Refinancing with a new lender often provides an opportunity to secure more favorable terms, such as lower interest rates or extended loan terms. Carplus can help you explore both options and guide you towards the best decision for your financial goals.

Do I have to change the lender?

It depends on what you want to do. If you have found a new car finance company with more favourable terms, then you can change lenders. If you are satisfied with your previous lender but want to start refinancing, then you should contact them to discuss the details of the transaction or contact a broker.

What is the repayment period for my car loan?

It depends on your financial circumstances and the details of the contract. Generally, customers can choose a repayment term of anything between 24 and 60 months.