Help & Advice

Can you refinance a car loan?

My current Ford loan deal ends in March and I'm looking at just keeping the same vehicle and financing it elsewhere as Ford's monthly figure doesn't fit my budget.

Is this possible and can you re-finance a current agreement.

Sarah B


Answer

Hi Sarah, yes - this is certainly possible. I take it that you're after re-financing the balloon payment at the end of the agreement?

What is your settlement figure with your current finance company and what is the car worth approximately? What have Ford quoted you?

I look forward to your response and i'm confident we can help you out. Please make an application when you're ready and if approved we also provide a no obligation quote. Kind Regards, Rachel

Answer correct as of September 2016

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More related questions

Hi there, I have current finance on car with outstanding settlement figure of approx £4900. can you help to pay this off and finance a new car we have seen? Thanks

Answer

Hi Kevin. Yes this is possible. I would advise that you get a valuation on your vehicle from a reputable dealer. We can then assess the level of negative equity (if any) in the vehicle and look to see whether we can tie this up in to another agreement on a different vehicle.

If you're not in negative equity we can simply provide a finance agreement for your new car and the supplying dealer will be responsible in clearing the current £4900 settlement figure. Please make an application when you are ready. Thanks, Rachel

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Hi Rachel, I'm not sure if this portal is still working as I see comments made in 2012. Anyway, I'll give it a shot.

I have a £6,625 settlement figure from Mazda. I am just about 8 months away from finishing my settlement with a Guaranteed future value of £4000 given to me by Mazda.

Anyway i want to refinance the car to lower monthly payments, and if so, what happens to my Guaranteed future value?

Answer

Hi Naval, yes i'm still here answering questions :-)

The good news is that we can re-finance deals for customers who want a better rate and repayment. Would you be looking to re-finance the £6625 over 3-4 years? If so, hire purchase would be your best option where you'll own the car outright at the end of the term.

The guaranteed future value only matters if you are handing the car back or part exchanging your vehicle at the end of the term. As you want a new deal this will simply supersede what you have in place.

Please make an application and once approved we provide a no obligation quote. Kind Regards, Rachel

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Hi. I am only 12 months into my current 48 month PCP with VW finance. However my circumstances have changed and I now need a larger car.

Is it possible to refinance to purchase a new (used) car with a different independent car dealership? I have negative equity therefore I am aware I will have to pay more if this is a possibility. Many thanks.

Answer

Hi John, quite simply you can indeed re-finance. We just need to find out what your settlement figure is and what your car is worth approx (trade value). If you're in lots of negative equity we may need you to place a cash deposit in to make up some of the difference.

When you part-ex your current car the dealer will settle the finance and we can finance the new car of your choice. Please make an application and once approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Is it possible to provide a loan for a touring caravan or do you just do cars? Thanks

Answer

Hi Kevin, we can indeed provide loans for touring caravans. Basically, anything with a motor and wheels!

Please make an application and once approved you can choose a vehicle from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi Rachel, my 36 month PCP is coming to an end with Ford and they are telling me what I will need to re-finance is £5117.00 after the agreement is over. Is this possible to re-finance with yourselves if I am wanting to keep the car when the agreement finishes? Many thanks.

Answer

Hi Chris, this is certainly a possibility with ourselves as we have a number of lenders on our panel that allow us to re-finance balloon payments.

Whether we can get you accepted will depend upon your credit circumstances but we'll simply search the market for you to get the most appropriate deal.

Please make an application when you're ready and if approved we also provide a no obligation quote. Kind Regards, Rachel

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Hi Rachel,

I have one payment left on my 44 month agreement with Renault finance. I'm not sure what's the best option regarding the balloon payment. The balloon payment is £4653, I've been paying £185 per month for the last 43 months. They have offered me a refinancing agreement of £210 per month over two years, the total amount payable would be £5050. Apr is 11.9%. The car value is currently £5,500. I'm not sure what's the best option, I.e, refinance, part exchange. I am totally lost!

Please let me know if you think I can get a better deal, and what is the best option at the end of the agreement.

Answer

Hi Symone, thank you for your question.

The choice is all down to your personal preferences in all honesty. If you wish to keep your current car and re-finance the balloon payment we could potentially beat the 11.9% APR that you have been offered by Renault as we have access to some low rates currently. Whether we can get you accepted on such a low rate though will depend upon your financial credit history.

If you fancy a change of car completely you also have this option. You can part exchange the vehicle at any dealership and use any equity as a deposit towards a newer car. Again, we could help you secure the finance if you wish.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Hi Rachel,

I'm just wondering if I can refinance for a cheaper car? At the moment I am paying €262.00 a month, and I have paid 12 months so far. I still have 2 years left, and my settlement figure is 4000.
Many Thanks.

Answer

Hi Deborah, thank you for your question.

There is an option you could consider if you are applying for finance with ourselves, you can part-ex your vehicle to cover some or all of the settlement amount. If your vehicle is worth less than you owe and you cannot find the difference yourself, we actually have lenders that can cover the negative equity and add this on to new finance. This is provided that your application meets their criteria and also depends on how large the amount you need to cover is.

Please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel

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Rachel Wilson, Underwriting Manager

Set your budget

£
4 years

In this illustration your credit score is set to

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender