Key takeaways

  • Compare remaining cost of the old contract with total cost of the new one.
  • Check early repayment and new contract fees.
  • Do not extend the term just to make the payment look better.

Next step

Keep planning your car purchase

Choose the next practical guide or calculator to check the payment, compare offers and avoid expensive surprises before signing.

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When refinancing can work

Refinancing may help if your credit profile improved, market conditions changed or the old contract was expensive. It can also help short-term cash flow if you understand the total cost impact.

Calculate remaining repayment on the old contract and total repayment on the new contract including fees. If the new option only looks better monthly but costs more overall, it is deferral rather than saving.

Important

ParimAutolaen.ee is an independent guide, not a lender or financial adviser. Always check the lender's pre-contractual information, annual percentage rate and your own repayment capacity before signing.

Frequently asked questions

Does refinancing hurt borrowing capacity?

A new application means a new affordability assessment. If refinancing reasonably lowers obligations, the impact can be neutral or positive; if it adds debt or extends risk, it can be negative.

Sources