If you want to keep your current car but need a new finance option, AutoMoney Trust may be able to help you refinance through HP car finance.
Refinancing means replacing or restructuring an existing finance position with a new finance agreement. With AutoMoney Trust, this is most commonly used by customers who are reaching the end of a PCP agreement and want to keep their car by spreading the final balloon payment through HP finance.
Instead of making the balloon payment at the end of your PCP finance agreement, you may be able to apply for a new hire purchase agreement and spread this amount over fixed monthly payments.
Finance is subject to status, affordability checks, vehicle checks and lending criteria. Refinancing is not guaranteed and may not be suitable for everyone.
Refinance with AutoMoney Trust may suit customers who already have a car on finance and want to explore a new finance option.
This service may be suitable if you:
If you are unsure whether refinancing is right for you, you should compare the full cost against your other available options before deciding.
A common reason to refinance is when a PCP agreement is coming to an end. At the end of a PCP agreement, you may usually have options such as returning the car, part exchanging it, or paying the final balloon payment to keep it.
If you want to keep the car but do not want to pay the balloon payment in one lump sum, AutoMoney Trust may be able to help you refinance that amount with HP finance.
If you are happy with your current car, refinancing may help you keep it instead of returning it or starting again with another vehicle.
A PCP balloon payment can be a large final cost. Refinancing may allow you to spread this amount over fixed monthly repayments, subject to status, affordability and vehicle checks.
Your initial eligibility check uses a soft credit search, so checking your eligibility will not affect your credit score.
If the refinance is completed through HP finance, the car becomes yours once all required payments and the option to purchase fee have been made.
Complete the online application with your personal, income, employment and contact details. You will also need to tell us that you are looking to refinance your current car finance.
The first stage uses a soft search, so checking your eligibility will not affect your credit score. Any offer depends on status, affordability and lending criteria.
Open finance affordability form
We will need details about your current finance agreement and the car you want to keep. This may include the finance provider, final payment or settlement amount, vehicle registration, mileage and condition.
The vehicle and refinance amount must meet AutoMoney Trust criteria before finance can be completed. If more information is needed, our team will explain what is required.
If your application is approved, we will explain the refinance offer before you decide whether to continue. This includes monthly payments, APR, agreement term, total amount payable, fees and any important conditions.
You should compare refinancing with your other available options, such as paying the final amount in full, returning the car or part exchanging it.
Open finance calculator
Before signing, read the agreement carefully and make sure you understand the payments, fees, agreement term, total amount payable and your responsibilities.
If everything is agreed, documents are signed and all checks are complete, the refinance agreement can be finalised. You can then keep the car and repay the new HP agreement monthly.
Refinancing can help spread a cost, but it is still a new credit agreement. You should understand the total cost, your responsibilities and what happens if payments are missed.
Paying a final payment or settlement amount in full upfront will usually cost less overall because you avoid paying interest on a new agreement. Refinancing may make the payment more manageable monthly, but it can increase the total amount payable.
The vehicle will need to meet AutoMoney Trust criteria before finance can be completed. This may include checks on age, mileage, value, condition and settlement details. If the vehicle does not meet our criteria, we will discuss your options with you.
If the refinance is completed through HP finance, the vehicle belongs to the lender during the agreement. Ownership transfers once all required payments and the option to purchase fee have been made.
If you miss payments or do not keep to the agreement, this may affect your credit score and your ability to get credit in the future, read our faq about this topic. Your vehicle may also be at risk if you do not maintain payments.
It is usually better to look at refinancing before your current agreement ends or before a final payment becomes due. This gives time to check the amount owed, confirm vehicle details, review affordability and compare your options with other lenders.
Before applying, it can help to have:
You can also read our guide on refinancing PCP balloon payments before applying.
If you want to keep your car and spread the cost through a new HP agreement, you can start an application online. The first stage uses a soft search, so checking your eligibility will not affect your credit score.
- Can I refinance PCP balloon payments?
- How does HP finance work?
- Credit checks for car finance
- Documents needed for a car finance application
- How does the loan term affect my payments?
The main difference is that with Hire Purchase (HP) you own the vehicle at the end of the agreement, whereas Personal Contract Purchase (PCP) includes an optional final balloon payment if you want to keep the car.
With Hire Purchase, you repay the full value of the vehicle through fixed monthly payments and become the owner once all payments and any option to purchase fee have been paid.
With PCP, monthly payments are usually lower because you are paying towards only part of the vehicle's value. At the end of the agreement, you can pay the balloon payment 9also known as a final payment) to keep the vehicle, return it, or choose another available option.
One of the main differences between HP and PCP finance is how ownership and mileage work. PCP agreement often include annual mileage limits and potential charges if the vehicle exceeds the agreed mileage or is returned with damage outside normal wear and tear. Hire purchase does not usually have mileage restrictions, making it a popular option for drivers who want flexibility and the certainty of owning the vehicle at the end of the agreement.
AutoMoney Trust offers hire purchase car finance only, providing customers buying used cars a straightforward agreement, fixed monthly payments, and the reassurance that they can own their vehicle once the agreement is completed.
Yes, you can apply for car finance with a low credit score. AutoMoney Trust considers applications from customers with lower credit score, and having a low score does not automatically prevent you from being considered for finance. Each application is assessed individually based on your wider financial circumstances and affordability.
We understand that a credit score does not always provide a complete picture of your financial situation. That's why we also consider factors such as affordability, income stability, existing financial commitments and recent credit conduct when reviewing your application.
Having a low credit score does not automatically mean you will be unable to get car finance. However, it may affect the finance options available, including the rate offered or the amount you may be able to borrow. All applications are assessed individually and remain subject to status, affordability checks and our lending criteria.
If you are looking for car finance with a low credit score, you can explore your options with AutoMoney Trust by completing an online application. Our initial assessment helps you understand whether finance may be suitable for your circumstances, with a decision available in minutes.
The length of your car finance agreement can have a significant impact on both your monthly payments and the total cost of borrowing. Choosing a longer finance term, such as 60 or 84 months, spreads the cost of the vehicle over a greater number of payments. This can make your monthly payments more affordable, but it may mean you pay more interest overall throughout the agreement.
A shorter car finance term, such as 36 months, usually results in higher monthly payments because the balance is repaid over a shorter period. However, paying the agreement off sooner can reduce the overall amount of interest paid, making it a potentially lower-cost option over the full term.
When choosing the right finance term, it is important to consider your budget, monthly affordability, and how long you plan to keep the vehicle. The best option is one that allows you to comfortably manage your payments without putting unnecessary pressure on your finances.
AutoMoney Trust offers car finance terms from 36 to 84 months, giving you flexibility to choose an agreement that suits your circumstances. Use our car finance calculator to compare different term lengths and understand how your monthly payments and overall costs could change before applying.
To apply for car finance with AutoMoney Trust, you'll usually need documents that help verify your identity, confirm your income and affordability, and validate your address. The exact documents we'll ask for will depend on your individual circumstances, but having the relevant information ready before you start your application can help make the process quicker, smoother and reduce the likelihood of delays.
You may need to provide proof of identity, such as a valid UK driving license or passport, along with proof of income such as recent payslips or bank statements. You may be asked for proof of address dated within the last three months, as well as details of the vehicle you are looking to finance if you have already chosen one.
If you are self-employed and applying for car finance, you may need to provide additional information, such as SA302 forms, tax calculations, or business accounts, to help demonstrate your income and affordability.
The documents required can vary depending on your individual circumstances and application. Providing accurate details and having your documents available in advance can help sped up the car finance application process and reduce the need for additional requests.
