can i modify a car on finance

If your car is on an HP car finance agreement, you might face restrictions on what modifications you can make while the finance is active. 

Since the finance company is the legal owner of the vehicle until the agreement is fully settled, you’ll need their permission before making any modification.

Some lenders may allow small changes, but it’s important to consider how modifications could affect things like your insurance or the vehicle’s value.

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What is classed as modifications on a car? 

A car modification is any change to the car’s appearance, interior, or performance that differs from the original manufacturer’s specifications.

Here are some examples of modifications:

Cosmetic modifications:

  • Body kits, including splitter and spoiler kits
  • Tinted windows
  • Car wraps or resprays (to change the colour)
  • Upgraded alloys
  • Stickers or decals
  • Custom interiors
  • Upgraded sound systems
  • Under-car lighting

Performance modifications: 

  • Engine tuning or remapping
  • Intake and exhaust upgrades
  • Suspension or handling upgrades
  • Lowered suspension
  • Tow bars or roof racks

If you’re considering a change that isn’t listed here, it’s always best to check with your finance provider to confirm whether it’s classed as a modification.

What will happen if I modify a financed car?

If you modify a car that’s under a finance agreement without permission, you risk breaching your terms and conditions. As you don’t legally own the vehicle, you cannot make changes without explicit consent from the finance company.

If the car has been modified without approval, the finance provider may:

  • Terminate your agreement.
  • Request full payment of the remaining balance.
  • Repossess the vehicle.

Lenders might view unauthorised modifications as reducing the car’s value or increasing their risk, especially if the changes invalidate your insurance policy.

Will my finance company give permission for me to modify my car?

Each lender has its own rules about modifications, and what is acceptable can vary. It’s always a good idea to check your agreement terms, as most lenders include details of any restrictions.

Some modifications, like adding a tow bar for a caravan or a roof rack for sporting equipment, may be more acceptable to lenders. However, changes made for personal preference, such as wrapping the car to change its colour, are less likely to be approved.

Do modifications affect car insurance?

The short answer is yes. Modifications can impact your car insurance, and in some cases, they might void your policy altogether. If you don’t inform your insurer about changes, you may not be able to claim in the event of an accident or theft.

Insurance companies often view modifications as increased risk. For example, performance upgrades like boosting engine power may increase the likelihood of accidents, resulting in higher premiums or policy refusal.

Even if your finance company approves the modifications, you must check with your insurer to ensure they are covered under your policy. Some changes may be accepted but could still lead to an increase in your premium.

Need to ask us questions about modifying your car?

Speak to one of our friendly Customer Support Agents on the Freephone number above to learn more on making modifications to a car that is on finance with AutoMoney Motor Finance.

Car finance with AutoMoney Motor Finance

If you are looking to finance a car through hire purchase, AutoMoney may be able to help. We offer finance on a range of vehicles nationwide. Call our team on the Freephone number above or click to apply for HP car finance with us. 

Representative example

You could borrow £10,000 over 60 months with an initial payment of £490.66 (including £199 Admin Fee) followed by 58 monthly payments of £291.66 with a final payment of £490.66 (including optional £199 Option to Purchase Fee).

Total amount repayable will be £17,897.60.

29.3% APR, annual interest rate (fixed) 24.7%.

This example uses the representative APR. This is the rate at least 51% of customers are expected to get.

Lending is subject to status and additional affordability checks. Rates quoted are subject to change and will depend on lending amount and personal circumstances.

FAQs

It depends on the type of changes you want to make. Using incorrect or aftermarket parts could pose safety risks and potentially lead to accidents. It’s always important to research thoroughly before making any modifications and consult a qualified mechanic to determine if the changes are safe and suitable for your car.

Upgrading alloys might not directly increase your insurance premium, but it could raise the risk of theft if the new alloys make the car more appealing or valuable to potential thieves. Depending on the make and model of your car, insurers may see this as a higher risk and adjust your premium accordingly, especially if the car was already a target for theft before the modification.

Some modifications are illegal in the UK, including:
•    Adding blue lighting or features that impersonate a police vehicle.
•    Exhaust systems louder than 74 decibels.
•    Excessively tinted windows.
•    Tinted front and rear headlights.
•    Installing Nitrous Oxide systems for engine performance.

Always check UK vehicle regulations before modifying your car to avoid fines or penalties.