Apply for Renewal Our Renewal Process Before you Renew... Looking to Upgrade?

What you need to know before you renew

renewal information characters

If you are looking to end your current finance agreement and take out a new one, please take a look at the important information below before making any decisions to end your current agreement with us.

Credit profile

Your application will be reviewed by our underwriting team. Just as the first time around, your finance options are partly determined by your current credit status. Have you kept your repayments up to date and on time with us? This will impact your likelihood of getting approved for a new loan with us.

How are your other credit commitments looking? We will review your payment history with us but also others you have credit commitments with to ensure you are in a position to commit to a new finance agreement with us.


Vehicle choice

We understand that you may have an expanding family and want a larger vehicle or would like something a little newer and with less mileage.

Take your time when it comes to choosing the perfect car and think about what would be suitable for you and your circumstances over the next 3 to 4 years.

We would suggest you think about the costs associated with your choice of car such as fuel, insurance, tax, MOT, servicing and maintenance costs, as these will all have an influence on the affordability of the vehicle.


Settling your existing car finance

Please note that your existing finance agreement must be settled prior to taking out a new finance agreement, we are unable to add any existing finance into a new agreement.

This can be done via paying off the remainder of your agreement yourself or you can visit one of our dealerships where you can sell the car them and use the proceeds to settle the existing finance. They will look to get you into a new vehicle.


Can I use my current car as a part exchange?

You don’t have to have a deposit when you take out a finance agreement with us. But we can accept down payments in the form of part-exchanges or cash and this will reduce the total amount that you are borrowing.

This may be helpful if the car you want exceeds the amount, we can lend to you. Our maximum lend amount is £10,000 (subject to status and affordability), so if the car you want is £11,000 a part exchange or deposit could make this work.

One of the most attractive points of part exchanging your car with the dealer is the fact it will immediately reduce the price of the car you’re interested in. If you happen to be downsizing, you could drop the price considerably.

A further benefit to part exchanging your car is how simple the process is. All you have to do is bring your car, any spare keys, your MOT certificate and your V5C and the dealer will do the rest.

Upon approval, you can purchase a new car from one of our reputable dealers across the UK. They can provide you with a part exchange value for your current car. If you trade in your old car, any finance secured on it must be settled in full.


What is negative equity?

Negative equity means that you owe more money on your car loan than the vehicle is worth. This is also referred to as being “upside down” on a loan and it can have an impact on your ability to sell or trade in your current vehicle and upgrade to a new one.

For example, if the balance you’ve left to pay on your finance is £5,000, but the value of that car is now only £4,000, then the finance would be in negative equity as there is a difference of £1,000.

As a responsible lender we will not add any negative equity into a new agreement.

How does negative equity occur?

It is when your car depreciates faster than you can pay it off. Paying a deposit may reduce the chance of negative equity when the time comes, and you want to upgrade your vehicle. When looking to take out a car on finance it is worth checking the total amount you’re borrowing and the term against the likely rate of depreciation.


How do I get out of negative equity?

Pay off the remaining balance: One way of getting out of negative equity is to pay off your loan outright. Negative equity only exists when you still have a balance to pay on the finance with us. As soon as you clear the balance you fully own the vehicle.

Make overpayments where possible: If you have some spare cash each month or maybe receive a bonus in your wages, it may be worth using this to make over payments on your car finance if you want to upgrade your vehicle soon. This will mean you will reduce the loan term so you’ll pay it back faster.

Continue with your contractual payments: If you do not have the funds to clear the remainder of the loan, another way to get out of negative equity is to continue to make your payments. The more you pay off the smaller the loan gets.


How do I know if I’m in negative equity or not?

We would suggest you get an estimation of your vehicles value and then obtain a settlement figure from us. You will be able to compare the two figures and see if you ready to renew and upgrade to a new car or if you will need to make a few more payments.


Representative example – Total amount of credit £7100, annual interest rate 15% (fixed), charge for credit £4270.24 (£4260.24 interest charged and £10 option to purchase fee), total amount payable £11370.24, 48 monthly instalments £236.88. 28.5% Representative APR – Subject to status, affordability and renewal eligibility criteria.