
Drivers urged to used free Martin Lewis MoneySavingExpert tool to check if they can cut car bills by £1,000s
Click to share on Facebook (Opens in new window)
A FREE online tool can tell you whether you could save thousands of pounds on your car bills.
MoneySavingExpert has launched a new tool that lets you see if you can save by refinancing your car if you're on a Personal Contract Purchase (PCP) or Hire Purchase (HP) deal.
Sign up for Scottish Sun
newsletter
Sign up
1
You could be saving thousands on your car finance by switching to a cheaper deal
Credit: GETTY_HUB
You might not have heard about car refinancing before but it is essentially when you take out a new, cheaper loan or car finance deal to pay off your existing deal.
Getting your car refinanced could save you hundreds of pounds in interest, or in some cases more than £1,500.
Whether you're able to save will largely depend on the interest rate you're currently paying, as well as how much and how long you have left to pay.
It can also depend on whether your credit history has improved since you took out a deal.
How do you use the tool?
You'll need to have some information to hand first.
For example, you will need to know the type of car finance you have, how much you borrowed, what your monthly repayment is and the amount you'd need to pay at the end of the deal to own the car.
You should also know when you took out the finance deal and the total length of time you took it out for.
Plus, you should have an idea of your credit history.
You don't need to give your exact score but you should be able to say whether it's "pretty good", "okay" or "not great".
If you're not sure you can check your score for free using one of the three main credit reference agencies: Experian, Equifax and TransUnion.
Five steps to get a better deal on your next car
When you're ready, you can find the Car Finance Checker tool here: https://www.moneysavingexpert.com/loans/car-refinancing/.
The tool will be able to tell you whether you're likely to save by switching.
It will also give you an estimated settlement figure (the amount you'll need to borrow to pay off your existing deal).
Before you can take out a new deal you'll need to settle your old finance agreement - and you can do this either using a loan or by using your new finance to pay off the old one.
Check whether you can get a loan
If it looks like you can cut your costs, you should check first whether a loan is cheaper.
People who have plenty in savings should opt to use that first, but if you don't then it's worth looking at loans.
The cheapest loans will generally give you a better deal than car finance unless it's already at 0% APR.
Remember, your ability to access the cheapest loans will depend on your credit history - so if you have poor credit you might not be able to get them.
You should then check whether the interest rates of the loans you're eligible for are cheaper than your current car finance deal.
It's worth noting that you may not want to opt for a loan if you don't want to own the car at the end of the deal.
If your current car finance is a PCP deal, it will have a "balloon payment" at the end - which is the amount you'll need to pay to own the car.
Taking out a personal loan means you'll be borrowing the total amount of finance you have left to pay off, which includes the balloon payment.
Therefore you'll likely see your monthly payments increase, even if the interest rate on the loan is cheaper and you end up paying less overall.
Make sure the payments are affordable for you, and if you don't want to eventually own the car you're likely better off looking for a cheaper car finance deal.
If you choose to go for a loan, you should get your settlement figure from your current car finance lender and make sure you can get a loan for that amount.
Assuming you're accepted for the loan, you can use it to pay off your old car finance deal.
You should be able to do this online or call up your lender to settle the payment.
Your new lender should then set you up with a direct debit so you can make your new monthly payments.
Consider a cheaper car finance deal
If you can't or don't want to save with a loan, you can look for cheaper car finance.
Some specialist car finance lenders will pay off your old car finance and get you set up with a new deal.
You can compare new deals using Motiv or Experian - it may be worth checking both in case they have different lenders or rates.
Again you'll need to get the settlement figure from your current car finance lender.
You may be able to check this online or you might need to call them up and ask how much it would cost to settle your finance deal.
When you contact the new lender, you will need to give them full details about yourself and your car.
The new lender will pay off your old car finance lender for you, meaning they will be the new owner of your car until the finance is paid off.
You can then pay your monthly repayments to the new lender.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Scottish Sun
an hour ago
- Scottish Sun
Shoppers spot two new Cadbury's chocolate bars on UK shelves for first time
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) SHOPPERS are flocking to supermarkets after a brand new Cadbury chocolate bar hits the shelves. The confectionery giant has launched a new Bournville dark chocolate at Sainsbury's, and it's a huge hit for nut fans. Sign up for Scottish Sun newsletter Sign up 2 Bournville have a new selection of flavours on offer The treat is packed with chopped hazelnuts and has a luxurious salted caramel flavouring woven through each piece. An eagle-eyed customer shared a snap of their find with members of the Food Finds UK Official Facebook group. "New Cadbury Bournville bar spotted in Sainsbury's," they wrote on the post. "I love Bournville, I need to try these new bars," one commented. Other members excitedly tagged friends in the post. The £2.20 bar is listed on Sainsbury's website but isn't available to order yet. We've asked Cadbury's owner, Mondelez International, which other stores will stock them and will update once we know more. A spokesperson said: "We're excited to be introducing two delicious new flavours to our Cadbury Bournville range, Salted Caramel and Chopped Hazelnut. "The new products will be available at retailers nationwide from late July and will be a permanent addition to our range." Bournville's new Chopped Hazelnut flavour isn't the only new one to delight sweet-toothed shoppers. There is also a salted caramel flavour and a simple yet delicious dark chocolate. The packaging has also had a huge update, the first Bournville has seen in 50 years. It puts a fresh spin on the iconic red and gold colours and reintroduces the iconic 'B' on each square from Bournville's 1908 debut. Valorie Doeringer, Brand Manager for Cadbury Bournville: "Our first campaign in over fifty years aims to cut through the pretentiousness and complexity often associated with the dark chocolate market and communicates that Cadbury Bournville is an accessible, smooth dark chocolate that everyone can enjoy, without the fuss. "The modernised new look of our range, alongside the introduction of our Salted Caramel and Chopped Hazelnut NPD, help us to drive excitement in the segment, and invite more consumes to discover the smooth taste of Cadbury Bournville.' The launch of the new Bournville bars comes just months after The Sun exclusively revealed Cadbury was bringing out a new Dairy Milk bar. The chocolatier unveiled its Dairy Milk Iced Latte flavour in May, combining classic Dairy Milk chocolate with a creamy coffee filling and crunchy biscuit pieces. The brand also introduced four limited edition Dairy Milk summer edition bars with packaging that changed colour based on temperature. Shoppers have also been going wild for the limited edition Cadbury Twirl White Dipped that's been landing on shelves. The bars, branded "outstanding" by customers, are similar to the classic milk chocolate Twirl but with a white chocolate coating.


Scottish Sun
2 hours ago
- Scottish Sun
Huge blaze breaks out at factory with 100 firefighters raced to scene & thick plumes of smoke billowing through sky
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) OVER 100 firefighters are tackling a massive blaze that has engulfed a factory in Birmingham. Witnesses reported spotting huge plumes of smoke billowing from the four factory units on Great Bridge Street in Great Bridge at around 10.40am today. Sign up for Scottish Sun newsletter Sign up 2 Great Bridge Street was closed after a huge fire broke out at a block of factory units Credit: WBFS West Midlands Fire Service sent 19 fire engines plus specialist vehicles and crews to the scene to battle the blaze. The plumes of smoke have reportedly been seen 15 miles away from Birmingham. Members of the public are being told to avoid the area and several homes nearby have been evacuated. There have been no reported casualties. A West Midlands Fire Service spokesperson said: "We have 15 crews in attendance at Great Bridge Street, Great Bridge, where they have responded to a Factory Fire. "Please avoid the area, where possible." At 5.30pm the fire service took to X to provide an update on the roaring fire. "Crews remain at Great Bridge St, West Brom tackling a fire involving tyres in a factory. "Please keep doors and windows closed if you live nearby, due to smoke. Avoid the area where possible; multiple road closures are in place." They said the four factories have all been affected, including a large supply of tyres. 2 Thick black smoke has filled the sky and can be seen from 15 miles away Credit: WBFS More to follow... For the latest news on this story keep checking back at The Sun Online is your go-to destination for the best celebrity news, real-life stories, jaw-dropping pictures and must-see video. Like us on Facebook at and follow us from our main Twitter account at @TheSun.


Scottish Sun
2 hours ago
- Scottish Sun
Huge outdoor chain with over 300 locations to shut shopping centre branch in DAYS
It comes as the sportswear chain shut at least 12 of its stores in 2024 CLIMB DOWN Huge outdoor chain with over 300 locations to shut shopping centre branch in DAYS Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A major outdoor retailer with over 300 branches is set to close one of its stores. The Trespass branch in Watford will shut its doors on October 31 - with an 'everything must go' sale now underway. Sign up for Scottish Sun newsletter Sign up 2 Trespass is shutting its store in Watford Credit: Getty Images The outdoor clothing and equipment shop is located on the upper mall level of Harlequin Watford shopping centre. According to the Watford Observer, Trespass may relocate elsewhere in town, though this has not been confirmed. For now, the store remains open during its usual hours - Monday to Saturday from 9am to 6pm and Sundays from 11am to 6pm. Nearby branches can be found in Harrow, Hemel Hempstead and Hatfield. Another business is expected to take over the unit once the Trespass store shuts. The chain sells sportswear and outdoor gear, including skiwear, waterproof jackets, fleeces, festival accessories, walking boots and camping equipment. This closure comes as part of a broader trend for the retailer. In July 2023, Trespass confirmed it would shut six outlets. The stores were located in Derby, Harrogate, Canterbury, Solihul, Workington and Chesterfield. In 2024, the chain announced plans to shut 12 more stores, including sites in Coventry, Norwich, and Middlesbrough. Iconic Glasgow Cineworld that's world's tallest cinema building set to close as staff face axe The Middlesbrough store - which had opened only two years earlier - closed in early 2025. However, the Norwich branch later reopened at a new location in Castle Quarter. In May 2025, Trespass pulled down the shutters on its Aylesbury store in Buckinghamshire. Meanwhile, popular homeware chain Lakeland is also preparing to shut one of its high street stores. The Lakeland store on Broad Street in Reading will shut on August 8, the store confirmed to The Sun. Signs in the window announce the closure and an 'everything must go' sale. Based in Windermere in the Lake District, Lakeland operates 58 stores across the UK and employs around 1,000 staff. The retailer is known for selling a range of homeware and kitchen products, including spatulas, food containers and baking suppliers. Why are retailers closing shops? EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre's decline. In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping. Falling store sales and rising staff costs have made it even more expensive for shops to stay open. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April 2025, will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed. The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing. Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns. Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead. In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few. What's increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online. They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places. The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.