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Voluntary Termination of Car Finance

Hello there, I have paid over 50% of the agreement and no longer wish to have a car. I signed for voluntary Termination. What do I do now?

Asked by Sarah

Hi Sarah, thank you for your question relating to voluntary termination.

You have the right to hand the vehicle back to the finance company as part of a voluntary termination at any point during your agreement – if you have not already paid 50% of the total amount repayable (not the amount borrowed as you have to include interest and fees) you will need to make a payment that means that half of the total amount repayable has been paid.

The finance company cannot charge you an extra fee or fine for this. However you will be responsible for paying any arrears and any amount arising if you have breached the obligation to take reasonable care of the vehicle.

Reasonable care may include but may not be limited to: dents or scratches on the car; making the car road legal (including MOT); and paying for any excess mileage you have done (as stipulated within your agreement).

I hope that helps and if you need car finance moving forward please come back to us and make an application. If approved, we offer a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 1279 People

£
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.


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