Yes! Here at CarFinance 247, we work with a panel of lenders and some of them can refinance the balloon payment on a PCP deal.
This type of loan would be a new finance agreement designed to help you keep your car and pay off your balloon payment in manageable monthly instalments.
The balloon payment is the amount you’ll need to pay to buy your car at the end of a PCP loan term. It’s based on the Guaranteed Minimum Future Value (GMFV) of your car and could range from a few hundred to a few thousand pounds.
If you can’t afford to cover the balloon payment without taking out finance, you don’t have to keep the car. One of the best things about PCP car finance is that it gives you options. Instead of buying the car, you could choose to give it back when your agreement ends or use any positive equity as a deposit in a new deal.
When you refinance, you take out a new agreement to pay the balance on your existing loan. There are a few reasons why this might work for you. Maybe your circumstances have changed, and you’d like to swap to a loan with a longer term and lower monthly repayments. Or perhaps your credit score has improved, and you could secure a better interest rate. Refinancing could even be an option if you have a joint car loan and now want the finance to be in your name only.