UK driver saves £3,000 by refinancing car loan

A driver named Charlotte Coles saved £3,000 on her car payments by switching her finance deal. She had initially signed up for a 15% interest rate when she bought her used Kia Nero. After a year, she discovered a refinancing tool from MoneySuperMarket that allowed her to lower her interest rate to 10%. Many drivers in the UK are paying too much for their car finance, with an average overpayment of £1,781. Over 60% of drivers are not aware that they can refinance their car loans in the middle of a contract. The refinancing process lets drivers take a new agreement to repay the old one, which can lower monthly payments. Those who might benefit the most are people who did not compare options when they first financed their car or those whose credit scores have improved since getting their loan. Interest rates are expected to keep falling, giving drivers chances for even better deals soon. Alex Hasty, a finance expert at MoneySuperMarket, highlighted that many drivers can save significant amounts, with an average savings of £1,700 for those who switch. Hasty noted that this could mean about £56 less to pay each month, which is roughly the cost of a full tank of petrol for a small to medium-sized car.