Car Finance

Hunnie1977

Hi have a ballon finace on my car with VWFS  would i be able to swap for a cheaper repayment option with other company for a lower rate ? as car is 25 plate 

molerat

I doubt anyone else will refinance an existing PCP on a cheaper like for like basis but you could get a straightforward loan to cover he settlement figure.  Whether someone will give you a loan though with an existing commitment is another matter, they will likely look on it as further borrowing.  Why do you want to refinance ?

DullGreyGuy

How long is the finance agreement for? Given it's a 25 plate you are presumably some time away from needing to pay the balloon.

What is the APR?

Presumably you shopped around when you got the finance and so the APR is appropriate for your financial situation. Getting a loan wouldnt have a balloon which would normally mean the repayments are higher because you are paying off the whole car in the loan timescales. Obviously you could take the loan over a longer timescale but then you may be reducing repayments per month but increasing the total amount to be paid. 

Assuming it was a new car then getting a "used car" finance on it rather than a personal loan is likely to be a higher APR, from my experience, normally manufacturers support the APR on new cars. You'd also have a problem that you may be in negative equity right now with the loan (inc penalty for early settlement) is more than the vehicles current value. and so a new PCP agreement may need to be topped up with more cash from you.