You may be able to refinance your existing car if your circumstances meet your lender’s criteria. Car refinancing just means taking out a new car finance deal to pay off your current one. There are several reasons you might want to refinance your car. You might want to get lower monthly payments, change the length of your loan, or potentially get a better interest rate than the one you currently have. However, it's important to remember that that spreading your outstanding loan over a longer term can reduce the monthly payment but may increase the total amount of interest payable.

Some people choose to refinance their car if they are able to lower their monthly payments. This could be possible if they are offered a lower interest rate or pick a longer repayment period. But remember, a lower monthly cost could mean paying more overall by the end of the agreement, depending on the car refinance terms. It’s important to look at the total cost as well as the monthly cost.

At the end of a PCP deal, you may be able to refinance the final balloon payment if you want to keep the car at the end but can’t pay the lump sum in one go. You may also be able to refinance a car during your PCP agreement to adjust your monthly payments. But, whether you can refinance your car under a PCP deal will depend on your agreement and personal circumstances. It’s important to remember that that spreading your balloon payment over a longer term can reduce the monthly payment but may increase the total amount of interest payable.