Can You Modify a Car on Finance?

Over 80% of new cars hit the road through some type of finance deal. These plans make cars within reach of the average driver. Monthly payments feel more doable than finding €20,000 or more in one go.

Drivers pump millions of euros into parts and labour each year. This desire to change and improve clashes with an important fact many forget. During a finance term, you don’t fully own that car sitting in your driveway. The direct lender holds the legal title until your final payment clears.

The rules around what you can and can’t do vary widely between lenders. Some finance deals strictly ban even minor tweaks without written okay. Others might allow small changes but draw the line at anything touching the engine.

Types of Car Finance in the UK

Many need loans for cars before buying one. Car finance offers several paths to get your car without emptying your savings.

Hire Purchase

HP deals let you spread car costs over fixed monthly payments. The lender keeps ownership until you make that final payment. You’ll need to put down about 10% upfront, with terms lasting between two and five years. Monthly costs tend to be higher than other options, but you’ll fully own the car once paid off. Many lenders offer competitive HP rates starting around 5-8% APR, depending on your credit score.

PCP

PCP works differently from other financing types. You pay smaller monthly amounts based on the car’s predicted value drop. In the end, you choose to return the car, pay a final “balloon payment” to keep it or swap to another PCP deal. This suits drivers who like switching cars every few years. In Ireland, PCP deals often start with APRs from 4%, but watch for mileage limits that could have extra fees.

Options for Bad Credit in Ireland

Bad credit needn’t slam the brakes on car ownership in Ireland. Many lenders offer loans for those with credit issues. Direct lenders sometimes prove more flexible than the main banks. Some dealerships work with finance partners who accept riskier applications. You can get bad credit car finance in Ireland more quickly with steady income proof.

What does the Finance Agreement say?

Car finance deals come with many rules. These papers have info about what you can and can’t do with your car. Most agreements clearly state that major changes to the car aren’t allowed without getting the green light first. The finance company still owns the car until you’ve paid the final euro.

The finance contract puts strict limits on modifications. You can’t opt for changing the engine, adding body kits, or tweaking the car’s computer system without permission. The lender wants to protect the car’s value and make sure it stays safe on the road.

The lenders might charge penalty fees, running into hundreds of euros for breaking these rules. Some might even end your deal early and demand the full balance right away. This could mean suddenly owing €15,000 or more without warning.

When asking for approval, be ready to show how the changes won’t hurt the car’s worth. Small changes like better speakers or seat covers usually don’t cause issues. But anything that affects performance or looks needs careful thought. The company might say yes if the modification raises the car’s value.

You should check your specific agreement before picking up tools or booking the garage. The lender sets their rules, and what’s okay with one might cause problems with another.

How to Get Modifications Approved?

Most lenders have a set path for these requests, often starting with a simple email or letter.

Your first step is drafting a clear note to your finance provider. You can list exactly what changes you want to make to the car. Be specific about brands, part numbers, and who’ll do the work.

Your vague requests often get quick “no” responses, so details matter here. You can mention whether a professional garage will handle these changes or if you plan to do it yourself.

You can back up your request with solid proof. This should show the modifications won’t harm the car’s market value. You can add statements from car clubs, dealer opinions, or even pages from car magazines that show how these changes can increase appeal. You can get a written view from a car value expert for bigger changes costing over €500.

Requests made early in your finance term have a better chance than those made near the end. You can allow at least three weeks for the finance team to review your plans before making any moves. Some companies charge a small fee of €30-50 to process modification requests.

You keep this approval letter safely with your other car papers. This written okay becomes your shield if the finance company ever questions the changes.

Should You Wait Until Finance Ends?

You can wait until you’ve made that final payment. This will let you have all the choices in your hands. The moment that the last euro leaves your account, the car becomes yours to change and adjust.

Many car buffs plan their modifications for the weeks right after clearing their finance. This lets them save up for quality parts while finishing their payments. You’ll avoid the stress of possibly breaking agreements or having to undo work if the lender objects. Even simple changes like window tints or custom wheels can cause headaches during a finance term.

Some drivers take a clever route by getting cheap car loans in Ireland to clear their car finances early. Many lenders often offer loans at rates around 6-8%, which might beat your current car finance deal. You can pay off your agreement to have full ownership of your right away. You could then spread the new loan over a term that suits your budget better.

You decide how long you’ll keep the car and whether you might sell it later. Extreme modifications might make you happy but can slash thousands off what buyers will pay.

Conclusion

Before ordering any expensive parts or booking garage time, you, as a driver, should check all the agreements while financing the car. The print in your finance agreement has the answer to what is allowed and what is not. Make sure not to get this wrong, which could lead to penalty fees or even having to pay off the whole amount right away.