Refinancing during a PCP and financing its final payment are different decisions
Refinancing during a PCP would involve considering a replacement agreement before the current PCP ends. Financing the optional final payment concerns the amount due at the end of a PCP if you decide to keep the vehicle. They can involve different amounts, terms and choices, so do not treat them as interchangeable.
Start with settlement and the vehicle position
The settlement figure is the amount needed to end the current agreement at that point in time. Ask the finance provider for the current figure and note when it expires. Compare it with the vehicle's current value, mileage and condition. Where the settlement figure is higher than the vehicle value, there may be a shortfall to consider.
Compare the cost and commitment
Look beyond the monthly payment. A new agreement may have a different structure from the existing PCP, and a longer term can increase total repayment.
- The settlement figure and any amount still to be covered
- The proposed term, rate, fees and total amount repayable
- The final payment, if one applies, and your end-of-agreement choices
- The vehicle's age, mileage, condition and value
When changing agreements may increase costs
Changing agreement can add interest, fees or time to the overall commitment. It may not be suitable if it extends borrowing beyond what you are comfortable with or does not improve your overall position. Read the current PCP carefully and ask for an explanation where a term is unclear.
Reviewed: 9 September 2026
Sources and further reading
Questions to consider
- Can I sell a financed car?
- The agreement terms and settlement position matter. Speak to the finance provider before assuming a sale will end the agreement.
- Can I refinance a used car agreement?
- Vehicle criteria can be relevant. Age, mileage, condition, value and agreement details may affect what can be considered.