Car refinancing involves taking out a new finance agreement, typically with a different lender, to pay off the balance on your existing car loan. This process settles your current finance with a one-off payment.
Customers often choose to refinance to better match their current financial circumstances. When you initially take out a hire purchase (HP) or personal contract purchase (PCP) deal, you commit to monthly repayments for a set period, usually between 2 and 7 years. However, life changes can make your original loan less suitable over time.
You might benefit from refinancing if your credit score has improved, potentially qualifying you for a lower interest rate and reduced monthly payments. Alternatively, if your expenses have increased, you might want to lower your monthly repayments.
Refinancing can also help if you initially took out joint finance but now need a loan solely in your name, potentially reducing your monthly payment as well. Additionally, if you’re at the end of a PCP agreement and want to keep your car, you can finance the balloon payment.
Whether you’re looking to secure a better deal, lower your monthly repayments, or finance a balloon payment, refinancing could be a beneficial option. It starts with a quote. If approved in principle, a dedicated account manager will contact you to discuss your options with no obligation. They can answer any questions about your existing loan and how refinancing could work for you.
Refinancing can be a great solution if your circumstances have changed, but it’s not guaranteed to be beneficial for everyone. The best way to determine if refinancing is right for you is to consult with one of our finance specialists.
Benefits of Refinancing:
We offer refinancing for both Hire Purchase (HP) and Personal Contract Purchase (PCP) deals.
Yes, it’s possible to refinance even if your credit rating has dropped since you took out your original loan. At Happy Motor Finance, we specialise in arranging finance for all credit scores. Speak to one of our team members to find out more.
Our team of experts is here to help you every step of the way.
For more information on how refinancing can benefit you, check our finance calculator and see what works best for you.
The above rates and monthly payments are an example only. The actual rate you will be offered by lenders could be lower or higher depending on your circumstances
Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.
*After completing the application, lenders will perform a "soft search" that will not affect your credit score. Should you get an offer of finance and wish to proceed, the lender will then perform a "hard search" of your credit file. Finance acceptance is not guaranteed, please click the following link for more information: Initial Disclosure Document
Amazing experience from start to finish, the people there don’t push you into anything. The checks are really good, they not only check out the car but who you are buying it from. Thanks to Matthew and Leon for all their support in helping me choose the right car for me.
They were extremely helpful and did everything they could to get me finance even with a bad credit rating. Couldn’t recommend these guys enough. Leon talked me through it every step of the way, the company are lucky to have you😊
Very helpful team Leon walked me through the whole process and didn’t push. He also gave brilliant advise and set up warranty package that gave me peace of mind.
I've just picked up my new car, absolutely love it, Alan was amazing I told him everything I was looking for in a car and within minutes he found my dream car, Alan kept in contact with me through the whole experience, checking I was still happy with everything, I would highly recommend Happy motors finance and have already done so with friends. THANK YOU SO MUCH! 😊
Cannot praise this company highly enough. Dealt with Alan, who pulled out all the stops and exceeded my expectations. Everything went so smoothly. Alan also made sure I was given all the details needed and communication was excellent. Keep up the good work guys.
