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Refinancing your car: How and why you'd do it

Refinancing your car could save you a considerable amount of money.

We've all heard about the ability to remortgage your home to save money and get a lower interest rate, and refinancing your car is no different.

Comparing and contrasting different tariffs is commonplace when it comes to trying to save money on energy, broadband, and television bills, and doing the same with car finance has become increasingly popular in recent years.

Over the last couple of years due to the pandemic and other factors, many people in the UK have struggled to keep up with their monthly repayments.

Do you want to refinance your car? Sign up to Car Credible today to see how we can help you save money.

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Financially, it's been challenging for a lot of people, so finding out there are ways to potentially save money on particular monthly repayments is exciting.

Car Credible can help you do just that. We explain below just how and why you may want to refinance and what you need to do in order to go about doing it.

What is car refinancing?

It basically means that you take out a new loan to cover the loan that you are already repaying. There can be many factors that influence the deals available to you.

You may have taken out a loan a long time ago and realise actually you are paying way more per month than you feel you should be for the car that you have.

Perhaps your personal circumstances have unfortunately changed, i.e. you may have lost your job recently, or you've had to fork out a large sum of cash on something else and feel you can no longer keep up with the car repayments.

Or maybe you still have a lot left to pay on the car and want to accelerate how quickly you pay it off by reducing the term and increasing your repayments - or even paying it all off in full.

So the circumstances for wanting to refinance can vary depending on each person's needs and budget. Some may want to save while others may want to pay off as soon as possible.

Why refinance your car?

Every person's situation is different and if you are considering refinancing your car, you should look to make a pros and cons list before going ahead with it.

Saving money is undoubtedly the main reason why someone may want to refinance their car. Anyone looking to do this will be hoping to find a lower rate of interest which will, in turn, lower the monthly repayment total.

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It's worth trying to work out how much it will cost you over time if you end up taking out a longer loan than you had previously, as chances are you will pay more over time, just in smaller doses each month than before.

Some people may wish to own their car outright sooner than waiting until they've paid every month off and therefore will take out a new loan in order to pay it off much quicker.

Refinancing with Car Credible

Car Credible can help you to refinance your car no matter what your situation is. You can easily apply for a loan by adding your car finance deal below and creating an account.

From here, we will assess your car finance deal and direct you to your own personalised dashboard. Depending on your car's current equity position will depend on whether you have access to your refinancing options within your dashboard.

If there's no option there, you will receive an email once signed up that'll direct you to the correct place to go to start applying for refinancing.

Our partner, CarFinance 247, will help you along every step of the way, ensuring you get access to the best possible deals to help save you money or own your car outright sooner.

You may even just want to get into something new rather than refinancing, and we can help you find a new car and get you into a better car finance deal before your current one expires.

Check us out today to see how we can help you.

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