Car Refinance Savings Calculator
Thinking about refinancing your car loan? Enter your current outstanding balance, APR, and remaining term alongside the new deal to see how much you could save each month and over the life of the loan.
Frequently asked questions
When should I consider refinancing my car?
Refinancing makes most sense when interest rates have dropped since you took out the original deal, your credit score has improved (qualifying you for a lower APR), or you are on a high dealer-arranged rate. The earlier in the agreement you refinance, the more interest you save.
Can I refinance any type of car finance?
You can refinance HP and personal car loans by settling early and taking out a new loan. PCP agreements can also be settled and refinanced, though the balloon payment complicates things. Under the Consumer Credit Act 1974 (section 94), you have the right to settle any regulated agreement early.
Does extending the term save me money?
Extending the term lowers your monthly payment but usually increases the total cost because you pay interest for longer. This calculator shows both figures so you can weigh affordability against total cost.
Are there costs to refinancing?
Your current lender may apply up to 58 days of additional interest as part of the early settlement figure. Some new lenders charge arrangement fees. Always factor the settlement figure and any fees into the comparison — use our early settlement calculator for the exact figure.
Will refinancing affect my credit score?
A new finance application triggers a hard credit search, which may temporarily lower your score by a few points. However, keeping up payments on the new agreement will rebuild your score quickly. The settled agreement will appear as "settled" on your credit report, which is a neutral outcome.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.