Car finance payments can sometimes feel like a big commitment, especially when life changes or unexpected expenses arise. The good news is that your payments aren’t necessarily set in stone.
One of the most straightforward ways to lower your monthly car payments is by extending your loan term. By spreading the payments over a longer period, each payment becomes smaller, making it more manageable month to month.
For example, extending a four-year loan to six years could lower your monthly payment from £300 to £250 – giving you a bit more room to breathe financially. However, while your monthly payments are reduced, the overall cost of the loan increases due to extra interest.
Read more about car finance costs and how they are worked out
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If you are struggling to make your payments, please talk to your lender about it – they will want to support you. Your financial well-being matters to us, and we’re committed to helping you manage your car finance in a way that works for you. If you have any questions or want to explore ways to adjust your Oodle payments, feel free to reach out to our friendly team. We’re always here to help and ensure you have the support you need.
Refinancing can be a great way to lower your car finance payments, especially if you’ve seen your credit score improve or if interest rates have dropped since you took out your original loan. By switching to a new loan with better terms, you could see a noticeable difference in your monthly payments.
Example of savings: A 10-20% reduction in your payment through refinancing could mean more flexibility in your day-to-day finances.
If you're able to overpay on your car finance, it can reduce the total amount you owe and shorten your loan term. Even adding a little extra each month – say £50 – can make a big difference over time. This can save you a significant amount on interest payments and help you pay off the loan sooner.
Tip: Before overpaying, it’s essential to check if your lender charges any early repayment fees.
There are several ways to reduce your car finance payments, whether it’s by extending your loan, refinancing, overpaying, or even considering voluntary termination. Each option has its own benefits and drawbacks, and we know it can be overwhelming to decide what's right for you.
At Oodle Car Finance, we’re here to offer expert guidance and help you find the best path forward. We’ll take the time to explain the potential outcomes of each option so you can make an informed, confident decision.
