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 Award-winning motor finance broker and 5-star rated on Google

Refinance My Existing Agreement

With the rising costs of new and used cars, many consumers are turning to refinancing their existing agreements. When you refinance your car with Hawkstone Motor Finance, you could:

  • Finance your PCP balloon payment into manageable and affordable monthly repayments.

  • Find a better rate of interest if your circumstances have improved since your initial application.

  • Avoid paying increased premiums for a new or used car and switch to an agreement with a longer loan terms and lower monthly repayments.

  • Get car finance that better suits your current financial situation.

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Car refinancing is a term used to describe taking out a new finance agreement to pay off the balance on an existing car finance loan. This is often with a new lender. When you refinance your car, you will effectively get your new finance company, to pay off your current finance company with a one-off payment. So, why do people want to refinance? There are a number of different factors that come into play before someone refinances.

  • Their circumstances may have changed since they entered in to the agreement and they want to reduce their monthly expenditure by spreading their finance over a longer period of time.

  • They love their car and don’t want to change it for something else at the end of the term so they refinance the balloon.

  • The rising costs of new and used cars has put them off the idea of changing so they choose to stick with their current car and pay over a longer period.

Request a no-obligation quote or call our team on 01656 47 00 66

When should I consider refinancing my car?

Is now the right time to refinance my car? Should I wait a few months? Or shall I see what my circumstances are like at the end of my agreement? All valid questions! If your circumstances have changed, for example your mortgage payment has increased dramatically, then refinancing your car could be a great solution.

Generally, one of the key benefits of refinancing your car is lowering your monthly payments. If you’re struggling to make your repayments, or simply want more disposable income, there’s no need to wait until the end of your finance agreement.

You might just be looking for a better deal than your current one. Much like interest rates, credit scores can change. Your credit score may have improved since you initially took out your agreement which means there may be better rates available to you.

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Refinance my balloon payment

At the end of your PCP (Personal Contract Purchase) agreement, you will usually have two options. You can hand the car back to the finance company and use any equity you might have as a deposit on a new car or pay the balloon payment in full and own the existing car outright.

The balloon payment can often be thousands of pounds which many of us simply don’t have available in one go. That’s where refinancing can be a very sensible solution. You can take out a new finance agreement, to pay off your existing agreement with one payment. You are effectively spreading the cost of the balloon payment over an additional 2, 3, 4 or 5 years depending on the lender’s parameters.


Taking out a new agreement will mean paying interest and therefore you will be paying more for your car than what you would have done if you paid the balloon off in one go.

How do I refinance my car?

It all starts by gathering a few bits of accessible information about your existing agreement, such as your settlement figure, registration of your car, current mileage and expected annual mileage. Our team will compare rates from our panel of lenders to find the best deal available to you based on your credit score.

We will then give you a breakdown of the finance quote.


There is no obligation to enter into a new agreement. If you wish to proceed with the new finance quotation, we will take you through our FCA-compliant process which ensures that you are aware of the benefits and negatives of the new agreement, and finally proposing you for finance. The new finance company will then pay off your settlement with a one-off payment to your existing finance company, allowing you to enter into a new agreement.

If you would like any further information or have any questions, please call our team on 01656 47 00 66 or use our contact page to request a call back.

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Request a no-obligation quote or call our team on 01656 47 00 66

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