Yes, if you change your mind and no longer want to continue with your car finance agreement, you have 14 days to reject it. This time is also known as the cooling off period. Your 14 days start on either the day that you sign your agreement or the day that you received a signed copy it, whichever happened later.
And it’s not just car loans, a 14-day cooling off period applies to all regulated finance agreements.
If you no longer want to proceed with your agreement, the first step is to contact the lender as soon as possible They can then ask the car dealership to reverse the deal and return the funds to them.
It’s important to remember that ending your finance agreement doesn’t automatically mean you’ve also pulled out of your contract to buy the car. In that case, you’ll need to find another source of funds to purchase the vehicle.
If your circumstances have changed but you’ve already had your loan for longer than 14 days, then you could still have options. With a refinance loan, you might be able to lower your monthly repayments and extend your loan term. This type of car loan allows you to settle your existing finance and take out a new deal.
Found an issue with your car? We work with trusted community-rated dealerships and issues with vehicles are rare but, unfortunately, used cars can sometimes go wrong. If the worst does happen, contact the dealership straightaway. It’s also a good idea to put your complaint in writing so that you have a record of all correspondence. You can find out more about your right to repair or replacement in our guide.