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Refinancing? We can help.

See if you can switch and save with Carmoola and thank us later.

Takes 60 seconds, no impact on your credit profile to see if you're approved 👍

Representative 15.7% APR

What is car refinancing?

Car refinance is the process of taking out a new finance agreement so you can pay off your current loan and switch to a new lender, usually with lower rates and better terms.

How does refinancing work?

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STEP 1

Tell us about your current finance

Answer a few questions about your car mileage and settlement quote from your current lender

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STEP 2

Get a new rate and budget 👍

After a few questions in our app you’ll find out if you’re eligible and your new rate and budget for refinancing

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STEP 3

Refinance your deal 💸

Simply pay your settlement quote with your Carmoola card or by bank transfer, all from your smartphone

Could refinancing save me money?

Is there anything better than saving money (apart from unlimited ice cream? Just us?). The prospect of being able to save some pounds is one of the biggest reasons people decide to refinance.

It’s worth noting that saving is not guaranteed, it will depend on what your current deal looks like and how your circumstances have changed since you signed your first agreement. The finance agreements available to you will also be affected by wider market conditions, which can impact the APRs on offer.

The good news is that if you’ve improved your credit score, you might qualify for a lower interest rate that will save you money in the long run. The even better news is, Carmoola can help.

What are the pros and cons of refinancing?

Benefits 💸

  • Secure a lower interest rate
    If your credit score has improved since taking out your current loan, you may qualify for a more competitive interest rate. This reduction can translate to savings over the life of the loan.
  • Reduce monthly payments
    Refinancing with a longer loan term can decrease your monthly payments. However, it's essential to understand that extending the loan term will generally result in paying more interest in the long run.

Things to consider 🤔

  • Early repayment fees
    Review your current loan agreement for any penalties associated with early repayment. These fees can potentially reduce the benefits of refinancing.
  • Interest rate fluctuations
    Monitor current interest rates and compare them to your existing rate. Refinancing may not be worthwhile if new rates are higher than your current one.

Car Refinance Calculator 🧮

Thinking about refinancing your current deal? Try our car refinance calculator to see what your new deal might look like. We’ve included helpful things such as how much interest you’ll be paying, how much your car new payments might be each month, and what your APR might be based on how you think your credit profile is doing.

NEW DEAL Breakdown

Interest rate

6.9
APR
36
payments of

£318.72

Final payment of

£319

Total cost of credit

£1,474.03

Option to purchase fee

£1

Total payable

£11,474.03

For illustration purposes only. The rate and budget you may be offered will be based on your individual circumstances. This is not an offer or a quote for finance. Your contribution does not form part of the refinance agreement.

Representative Example

Borrowing £10,000 over 54 months with a representative APR of 15.7%, an annual interest rate of 15.7% fixed and a deposit of £0.00, the amount payable would be £255 per month, with a total cost of credit of £3,770 and a total amount payable of £13,771 including a one-off Option to Purchase fee of £1.

We offer hire purchase loans between £2,000 - £40,000 at a personalised
APR between 6.9% and 24.9%

Your Existing Finance

Add details about your current contract and finance provider

Current monthly payments

Early settlement quote

If you don't have a quote yet, please estimate how much is left to pay on your existing finance agreement

Your New Finance Deal

Test drive contract length, credit profile and monthly payments

Credit profile

When you apply, we'll find out your exact credit profile. For now, please choose the option you think is most accurate

Excellent
Great
Good
Fair
Average
Months

Your new monthly payments

was
at APR

You could reduce your monthly payments by 🙌

Your monthly payments would go up 🧐

Add details ☝️ about your current contract and see if you might be able to save money by switching!

Download the Carmoola app to get your personalised refinance quote, and see how much you could save!

The use of this Refinance Calculator to determine how much you might save by refinancing is not a guarantee of the availability of credit facilities from Carmoola.

Car Refinance Calculator 🧮

Thinking about refinancing your current deal? Try our car refinance calculator to see what your new deal might look like. We’ve included helpful things such as how much interest you’ll be paying, how much your car new payments might be each month, and what your APR might be based on how you think your credit profile is doing.

Your Existing Finance

Add details about your current contract and finance provider

Current monthly payments

Early settlement quote

If you don't have a quote yet, please estimate how much is left to pay on your existing finance agreement

Your New Finance Deal

Test drive contract length, credit profile and monthly payments

Credit profile

When you apply, we'll find out your exact credit profile. For now, please choose the option you think is most accurate

Excellent
Great
Good
Fair
Average
Months

Your new monthly payments

was
at APR

You could reduce your monthly payments by 🙌

Your monthly payments would go up 🧐

Add details ☝️ about your current contract and see if you might be able to save money by switching!

Download the Carmoola app to get your personalised refinance quote, and see how much you could save!

The use of this Refinance Calculator to determine how much you might save by refinancing is not a guarantee of the availability of credit facilities from Carmoola.

NEW DEAL Breakdown

Interest rate

6.9
APR
36
payments of

£318.72

Final payment of

£319

Total cost of credit

£1,474.03

Option to purchase fee

£1

Total payable

£11,474.03

For illustration purposes only. The rate and budget you may be offered will be based on your individual circumstances. This is not an offer or a quote for finance. Your contribution does not form part of the refinance agreement.

Representative Example

Borrowing £10,000 over 54 months with a representative APR of 15.7%, an annual interest rate of 15.7% fixed and a deposit of £0.00, the amount payable would be £255 per month, with a total cost of credit of £3,770 and a total amount payable of £13,771 including a one-off Option to Purchase fee of £1.

We offer hire purchase loans between £2,000 - £40,000 at a personalised
APR between 6.9% and 24.9%

Why switch to Carmoola?

Anyone can switch their existing car loan by getting an early settlement quote. 
With Carmoola, you can switch in 8 minutes, all from your smartphone.

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Switch and save

Refinancing can unlock savings by restructuring your loan with a lower interest rate or better terms.

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5 ⭐️ support

Our friendly, UK-based team is here from 8am - 9pm EVERY day, via WhatsApp, email, SMS or phone.

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Payment flexibility

Missed a payment? You can catch up easily in our app and even make overpayments with no fees.

helping-you

Don’t just take out word for it

Trustpilot_ratings_5star

“The easiest application for car finance I’ve ever had. Even the garage I purchased from was impressed at how quick the process was! Would recommend to anyone.”

Corey

Corey

Trustpilot_ratings_5star

“This is the best car finance company I’ve ever dealt with, they are the meaning of hassle free and I can guarantee they’ll be lower than you current finance on interest rates.”

Twayne

Twayne

Trustpilot_ratings_5star

“Went from a few questions answered honestly and quickly over whatsapp. To signing my refinance agreement and my existing finance company getting paid in under 2 hours. Simple, easy and stress free experience.”

Connor

Connor

Trustpilot_ratings_5star

“Applied for finance and literally was asked a few questions the day after to clarify some things. The same day I went through the dealership and car was ready to drive home the same day. Superb company and communication and the app is great.”

Dan

Dan

Trustpilot_ratings_5star

“Easy to use the app and very helpful staff. I also was given the best deal that nobody else could offer me. Thanks team Hanan, Kayleigh and Tom.”

Jordan

Jordan

 

New to refinancing?
Check out our guides

Can I pay off my car finance early?

Your finance agreement is signed, you’ve started making payments, and you’re behind the wheel of your dream car – what more could you want, right? ...

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HP vs PCP: Which is right for me?

HP vs PCP is the big debate in car finance. They’re two of the most popular ways to spread the cost of buying a new or used car and have many...

7 Min Read

Can I Refinance My Car Loan?

Car finance is a long-term commitment. Depending on the details of your deal, the shortest terms are typically around one year, but you might sign an...

5 Min Read

FAQs about refinancing

Frustrated with your current finance company, or paying too much each month? You may want to consider refinancing over to a new deal. Got more questions? Head over to our FAQs page 👍

How soon can I apply to refinance my car deal?

Need to make a change now? You can apply to refinance your current car deal at any time. That said, it’s worth keeping in mind that some lenders will ask that you’ve had your existing loan for a set period (usually at least 12 months) before looking to switch things up.

Does refinancing a car hurt your credit score?

Credit scores are affected by a whole host of different things, but refinancing will usually lower your score in the short-term. That’s because your new deal will be considered a new account on your credit report while also adding a new hard search and reducing the average age of your credit.
 
Don’t worry; this decrease should only be temporary. Once you start making your new loan repayments, your score will start to recover. In fact, if your new deal comes with more affordable repayments – and reduces the chances that you’ll miss a payment – refinancing could even improve your credit score over time.

How many times can you refinance a car?

There’s no limit to the number of times you can refinance a car, but that doesn’t necessarily mean you should be looking to switch to a new deal every year. You’ll likely face penalty charges for ending each agreement early and making a new finance application will temporarily impact your credit score by adding a new hard search to your file. If you choose to refinance with a longer loan term, you’ll also need to pay more in interest.

Can I refinance my car if I have bad credit?

Bad credit scores can happen for a range of different reasons. There’s no judgement here; if you’ve missed payments in the past, you might still be able to refinance.
 
Your options may be more limited and you’re unlikely to have access to the lowest APRs, but there are lenders who specialise in bad credit car finance. You could switch to a loan with a longer term and lower repayments (paying more interest over time) or refinance your PCP balloon payment.

What documents do I need to refinance a car?

When applying to refinance your car, you’ll likely need to provide:

  • Proof of identity – such as a driving licence or passport
  • Proof of income – including bank statements or payslips
  • Proof of address – such as a Council tax statement or utility bill
  • Proof of insurance
  • Proof of settlement figure amount
  • Vehicle registration documents

Will my monthly payments decrease if I refinance my car?

One of the biggest reasons why you might be tempted to refinance your car is to reduce your monthly payments. Maybe you’ve had a change in circumstances, your expenses have gone up, or you’d just like to save a little more each month if you can.
 
If reduced monthly payments are your priority, you might be able to refinance with an extended loan term that spreads the cost of your finance over a longer time, although this will likely cost you more in interest overall.
 
You may also be able to lower your monthly payments if your credit score has improved since you signed your original loan agreement and you’re now eligible for a loan with a lower interest rate.

Can I refinance with the same lender?

While most refinancing loans will be from a new lender, you might be able to refinance with your existing lender if they have an option that suits you and your current circumstances.
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Takes 60 seconds, no impact on your credit profile to see 
if you're approved 👍

Rates from as low as 6.9% APR, Representative 15.7% APR

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