Can you modify a car on finance?
Generally, no. You can't make major or permanent changes to a car on finance. That's because the lender or leasing company legally owns the car while your agreement is running. Until it ends, you need their permission for anything that changes how the car looks, how it drives or what it's worth.
There are a number of small changes which are usually considered fine to make though.
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What modifications are usually allowed?
Most lenders are happy with small temporary changes that you can remove easily and that don't damage the car.
|
Usually fine |
Ask your lender first |
|
Seat covers and floor mats |
New alloy wheels |
|
Phone holders |
Lowered or raised suspension |
|
Plug-in dash cams |
Engine remapping or tuning |
|
Removable roof racks |
Tinted windows |
|
Steering wheel covers |
Body kits and spoilers |
|
Air fresheners |
Paint jobs or wraps |
Why don't lenders allow modifications?
Until you've finished paying, the car is the lender's security. If you stop paying, they may take the car back and sell it to cover what you owe. For this reason, they want it to keep its value.
Modifications can:
- lower what the car is worth, as many buyers want a standard car
- cause extra wear and tear, such as with lowered suspension
- make the car cost more to insure
- affect the manufacturer's warranty
Are there different rules for different types of finance?
Yes, but with all three types of car finance, you don't own the vehicle while the deal is running - so it’s always best to check with your provider.
|
Finance type |
Who owns the car during the deal? |
What happens at the end? |
Can you modify it? |
|
HP |
The lender |
You own it after the last payment and any option to purchase fee |
Sometimes, with written permission |
|
The lender |
You hand it back, pay the balloon payment to keep it, or part-exchange it |
Rarely |
|
|
PCH |
The leasing company |
You hand it back |
Almost never |
Can you modify a car on HP finance?
With HP, the car becomes yours once you've paid for it in full. This means some lenders are a bit more flexible. But until then, it still belongs to them. So:
- check your agreement for rules about changes
- ask your lender before you make any changes
- get their answer in writing
If they say no, you can wait until you own the car and make changes then.
Can you modify a car on PCP?
PCP is stricter. Many drivers hand the car back at the end, and the lender needs it to be worth what they expected when you signed. Changes could lower that value.
If you do make changes, you will likely need to undo them before you return the car. If its expected value or condition has dropped, you should expect to pay the difference. The same applies if you use voluntary termination to end the deal early.
Can you modify a car on PCH?
PCH is leasing, so the car is never yours. You must return it in the same condition you got it, apart from fair wear and tear. That means almost no modifications.
Removable extras like seat covers are fine, as long as you take them out before handing the car back.
What happens if you modify a financed car without permission?
Changing the car without the lender's approval could break your agreement. Depending on the change, you might:
- need to pay to put the car back to how it was
- have to pay extra if the car is worth less at the end
- find your insurance doesn't cover you, if you didn't tell your insurer
- end up needing to repay the whole balance straight away, or have the car taken back, in serious cases
If you've already made a change, talk to your lender. It's always better to be honest early.
Do you need to tell your insurer?
Yes. Tell your insurer about any modification, including looks-only changes like new wheels or a body kit. If you don't, they could refuse to pay out when you make a claim. Some changes may also push up the cost of your cover.
If you’re in doubt over whether or not a modification would be insurable, speak to your insurer before making any changes.
Can you modify a car bought with a loan?
Yes. If you buy a car with a loan instead of car finance, you own the car from day one. The loan isn't secured against the car, so you're free to make changes. Just check they're safe and legal, and tell your insurer.
How to ask your lender for permission
- Read your agreement and look for any rules about changes.
- Contact your lender directly, not just the dealer.
- Explain exactly what you want to change.
- Get their answer in writing before any work starts.
- Tell your insurer before the work is done.
Keep receipts and any original parts, so you can put the car back to how it was if needed.
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