What is refinancing?
In simple terms, car refinancing means taking out a new car loan, typically from a different lender, to pay the existing balance on your existing car loan.
This could potentially help reduce your monthly repayments or help you pay the ‘balloon’ payment on a personal contract purchase (PCP) contract, meaning you can own your car outright quicker. You may also have a hire purchase (HP) contract with a lot remaining to pay off, but you’ve found something that better suits your circumstances.
Another positive is that you don’t need to wait any specific duration before refinancing your vehicle loan. Refinancing is as simple as meeting all the requirements for the new loan. You can refinance immediately after buying-even before making your first monthly payment.
Types of car finance
The most common types of car finance agreement are hire purchase (HP), personal contract purchase (PCP), with others also being available.
Hire Purchase– This is a simple and popular option. In this case, you “hire” a car for a specific period of time and make regular payments. Once you’ve made the final payment, the vehicle is yours.
Personal contract purchase– Similar to HP, PCP differs in the following ways. You pay only the depreciation of the value of the vehicle. Not its full value. As a result, the monthly payments will be lower. But, at the end of the agreement, if you would like to own the vehicle, you’ll have to pay a lump sum, known as a ‘balloon’ payment.
How can we finance any car help?
Here at We Finance Any Car, we’re here to make paying off your car simple, affordable and convenient. Our network of lenders includes some lenders who offer refinance loans. Whether you already have an agreement in place or not, we always try to help you find the best deal. We have rates starting at only representative 6.9% APR as well. Let us help you refinance your car in three simple steps today.
How to apply
Get your quote: You can apply online using our finance calculator, or call us to tell us about your current finance situation and that you’d like to switch. A member of our team will be in touch to talk through your finance options and advise on which will be best for you.
Find out if you’re approved in a few seconds without affecting your credit score. This will of course depend on your credit score, affordability and fraud checks, among other things.
See your decision: Ensure you read and agree to the terms and conditions set out as well as the contract pack to ensure you’re happy with everything. If you are, you’re set!
