Refinance your car

Do you already have a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement?

You could get a better deal or spread the cost of a final lump sum payment when you switch from another provider.

Monthly comparison expandable section

Here’s an example of how much your monthly repayments could be with Personal Contract Purchase or Hire Purchase If you were to buy a car and need finance for £13,000 over 4 years.

Monthly comparison	PCP Finance Example	HP Finance Example
Monthly comparison Representative APR	PCP Finance Example N/A	HP Finance Example 6.2% APR
Monthly comparison APR	PCP Finance Example 8.9% APR	HP Finance Example N/a
Monthly comparison Total Amount of Credit	PCP Finance Example £13,000	HP Finance Example £13,000
Monthly comparison Annual interest rate (fixed)	PCP Finance Example 8.54%	HP Finance Example 6.00%
Monthly comparison Agreement Duration	PCP Finance Example 48 months	HP Finance Example 48 months
Monthly comparison Monthly repayments	PCP Finance Example 48 x £204.00	HP Finance Example 48 x £305.49
Monthly comparison Optional final repayment of*	PCP Finance Example 1 x £6,850	HP Finance Example N/a
Monthly comparison Total amount payable	PCP Finance Example £16,448.00 (Includes £10 Purchase Fee)	HP Finance Example £14,673.52 (Includes £10 Purchase Fee)

*With PCP, once you have paid all of your monthly repayments set out in your agreement, you have 3 options:

pay the optional final repayment and own the car
hand back the car (return conditions apply) without paying the optional final repayment
part exchange the car subject to settling your existing finance agreement; new finance agreements are subject to status.

Personal Contract Purchase and Hire Purchase at a glance

Am I eligible?	PCP features	HP features
Am I eligible? You'll need to be aged 18 or over Be a UK resident Be a Halifax Current Account holder (min 3 months) Registered for Online Banking	PCP features Choose how much deposit you pay Set your own mileage limit Lower monthly repayments No credit searches No early repayment charges Pay a final lump sum to own the car or return it in good condition Things to consider with PCP: Paying a bigger deposit will lower your monthly repayments Excess mileage charges may apply if you exceed the agreed mileage limit and want to return the car Charges may apply if the car is not returned in good condition; normal wear and tear is accepted	HP features Choose how much deposit you pay No mileage limits No credit searches No early repayment charges or final lump sum Own the car at the end of the agreement Things to consider with HP: Paying a bigger deposit will lower your monthly repayments The car could be repossessed if you don't keep up with your repayments.

Watch our video to understand more about car refinance.

Read video transcript expandable section

Halifax Car Refinance

Have you got a car on finance?

Refinancing with Halifax could help you get a better deal by lowering your monthly payments or even spreading the cost of a final lump sum to own the car.

But what is refinancing?

It’s simply when you start a new finance agreement to pay off an existing car finance agreement.

If you bank with us, you could switch your current car finance from elsewhere to us.

You could then choose to switch to one of two different car finance options - either Personal Contract Purchase (PCP) or Hire Purchase (HP).

With PCP, you could get lower monthly repayments than HP.

You could also own the car by paying a final lump sum.

With Hire purchase, the car’s yours at the end of the agreement – with no lump sum needed

With Personal Contract Purchase, we usually offer terms from one to four years. With Hire Purchase, terms are usually one to five years.

The final difference is that PCP comes with yearly mileage limits, but there are none with HP.

Therefore if you do not keep you car at the end of your PCP agreement and have exceeded your yearly mileage limit on return of the car, then charges will apply.

Either way, refinancing should be simple and we’ll send the funds directly to your finance provider.

Now, how do you get started?

Firstly, ask your current provider for a settlement quote. Then, go online and tell us about your car and your current finance. You’ll then get a personalised quote.

It won’t take long – you’ll find out if you’re approved in just a few minutes.

Email us your settlement figure, and you’re good to go.

We’ll switch you to Halifax.

Get started today to see if you could benefit from refinancing your car with Halifax.

How does car refinancing work?

If you're thinking of refinancing your car, here's how we'll process your application:

ask your current car finance provider for a settlement figure
sign into Online Banking and get a quote
get an instant decision, with no impact to your credit score
upload your settlement figure and we'll switch your car finance to us.

Frequently asked questions about car refinancing

Here's some helpful information based on the most frequently asked questions our customers have.

I want to speak to someone about my car refinance application expandable section
If you’d like to speak to someone about your recent car finance application, we’re here to help.

Call: 0333 202 7967

Lines are open:
- Monday to Friday, 8.30am – 6pm
- Saturday, 9am – 1pm
- Sunday and Bank Holidays, closed.
I don't have a Halifax current account; can i still apply? expandable section

Unfortunately, we wouldn’t be unable to offer you car finance. You’d need to hold a current account with us for a minimum of 3 months to be eligible. However, we could potentially offer you a personal loan.

See personal loans
If i have a poor credit rating, can i still refinance my car? expandable section

Unlike a personal loan, there are no credit searches involved with applying for car finance. However, we’ll check your income and any existing financial commitments you may have for affordability.

With a PCP or HP agreement the debt is secured against the car. In the event that you were unable to make the monthly repayments, the car would be repossessed to offset the remaining payments.
If i refinance my car, am i able to register the car in someone else's name? expandable section

Unfortunately, we don’t allow cars to be registered in someone else’s name. The person applying for car finance will be the named registered keeper of the car. You’ll need to have a valid driving licence permitting you to use the car and be the main driver; including on your car insurance policy.

If you’d like someone else to have use of your car, with your permission. They will need to hold a valid driving licence and be a named driver on your car insurance policy.
What is a settlement figure and how do i get one? expandable section

This is the exact amount needed to end the agreement you have with your current finance provider. You’ll need to get in touch with your current finance provider and ask them to send this to you. It will include any additional fees or charges that may be applicable.