Paid Refinance

STEP 1

Tell us about your current finance

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

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

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.

Switch and save

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

5 ⭐️ support

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

Payment flexibility

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

“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

“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

“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

“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

“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

FAQs About Refinancing

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.

Refinancing? We can help.

What is car refinancing?

How does refinancing work?