Start with the current agreement
Ask for or locate the current settlement figure and check how long remains on the agreement. Keep a note of the monthly payment, APR, mileage or vehicle conditions where relevant, and whether there are any fees or early-settlement points to understand.
Why a payment can change
Changing the rate, borrowing amount, or term can change a monthly payment. Extending a term can reduce the monthly figure, but it can also mean paying for longer and repaying more overall. A lower payment is not automatically a lower-cost option.
Other steps to consider
If you are finding payments difficult, contact your current lender promptly to discuss the support available under your agreement. Free, independent money guidance can also help you look at your wider budget.
Questions to consider
- What if an option is not suitable?
- You do not have to proceed with an option that does not meet your needs. Take time to read information and consider the total commitment before deciding.
- What if my circumstances changed?
- Review affordability and the whole agreement before making a decision. A change in income or expenses can make it especially important to compare monthly and overall costs.