Is there a 14 day Cooling Off Period for Agreeing Car Finance?

Hi, I've recently purchased (drove off the fore court yesterday) a new car. For no reason other than my own guilt at throwing £270 a month at a car, I'm looking at my options around returning the vehicle. I don't want to cancel the finance agreement if it means I have to pay the fee for the car in a lump sum. Is there any way to return the vehicle as you would any other purchased item - within a 14 days period and get a straight up cancel of the purchase?

Asked by John Davies
September 8, 2015

Hi John, thank you for your question. With your finance agreement, there is a 14 day cooling off period, so you should contact your finance provider to discuss this, and they should be able to cancel the agreement for you. With regards to returning the vehicle, if you bought the car in person from a dealership, the likelihood is that you have already signed the vehicle order form (this is a contract to buy the vehicle), so technically the dealership is not obliged to take your car back. Kind Regards, Rachel


Ending my current agreement related questions

Hi, My nephew has just purchased his 1st new car last Saturday from Bristol Street motors. His parents have put down £3500 cash deposit and the rest on finance. Drove the car home and noticed stone chippings on the paint work bonnet. Rang the garage deale

Asked by Paula thomas
September 8, 2015

Hi Paula, thank you for your question. Did you obtain the finance through ourselves? If so and you are still within the 14 day cooling off period, you would be able to cancel the finance deal with us. If you have signed the order form at the dealership, however, technically the dealership isn't obliged to take the car back unfortunately. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 9 People

I've ordered a brand-new car through a local dealer and I have been told that the car has been assigned to me. How am I placed in just changing the model of the car at this stage? I am told that when a dealer acquires a car, they have had to pay for it so

Asked by Toria McNelle
September 8, 2015

Hi Toria, thank you for your question. The order form is a legal binding document, so although you have not signed any finance documents at this stage, you are still liable to pay for the vehicle. Of course the dealership may allow (at their discretion) you to swap for a Ford Focus if it has the same value, but this is not obligatory on their part at all. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 10 People

Hi, I signed papers for finance for a car on Tuesday and was told I could collect the car later on that night. However, due to the car needing work done, I still don't have a date to pick up the car three days later. I have seen a better car that would su

Asked by Gillian aird
September 8, 2015

Hi Gillian, thank you for your question. As you haven't yet taken delivery of the car i believe you are within your rights to call the finance company and inform them that you now don't wish to go ahead with the purchase due to the dealer taking 3 days to fix the issues with the car. Hopefully they haven't yet released the funds to the dealership. Do you have a copy of the signed finance documentation? Just so you know we can often beat rates offered by car dealerships. If you wish please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, i'm hoping that you can you help me. I purchased a car from Carcraft (west midlands) on 17 Jan 2014. I gave them a budget of £250 a month at the most and after finding a car they got back to me with a figure of £285 a month. OK i thought fair enough

Asked by Adrian Butler
September 8, 2015

Hi Adrian, thank you for your question. The reference to the maintenance pack seems like a sales tactic to me. No finance company would force any optional extras on a customer. I'd imagine with a few stern phone calls you could have this extra agreement cancelled. Was the 2nd agreement with the same finance company? If so ring up and explain what has happened and they should be able to un-wind this part of the agreement assuming you're happy with the original finance deal. A phone call to the general manager at the Carcraft branch in the West Midlands wouldn't do any harm either. I don't think you'd be able to sue them as such but it would be worth taking some free legal advice should they not cancel the maintenance finance agreement. Good luck and if you need finance in the future please make an application with us. Once accepted we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 7 People

Hi, I'm in need of some advice. Within the last 48 hours i have taken a car on finance from Evans Halshaw with the finance provided by Santander. I also used my old car as part exchange which they valued at £200. I have now realised i have made a huge m

Asked by David Nichol
September 8, 2015

Hi David, thank you for your question and apologies for the delayed response. In short, you do have the right to withdraw from the credit agreement however you would still need to pay for the car (plus a small amount of interest) as you have entered into an agreement with the car dealer to purchase the car. Notice of withdrawal can be given verbally or in writing. Your best bet may be to go back to the dealer and see if they can exchange the car for a cheaper one - you can then get the current agreement settled and take finance out on the cheaper car. I hope this helps and good luck. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 13 People

Hi, I've just put a £1k deposit down on a new car, the deal is to trade in my current car which has reached the end of its 2 year finance deal and take another finance deal on the new car! I've changed my mind as I think the payments are too high. Can I

Asked by Emma Tate
September 8, 2015

Hi Emma, thank you for your question. My understanding is that if you have signed an order form it is a legally binding agreement to buy the car. However, if you haven't signed any finance documentation you haven't agreed to any repayment period as such. I'd advise to have an open and honest conversation with the dealer and see if you can come to an amicable agreement.
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 13 People

Hi Rachel, your advice is not completely correct.

It is not called the "cooling off period" but the Right Of Withdrawal. Advice as you have given it causes confusion and often leads to customers, like myself, thinking that they can return a

Asked by G Jones
September 8, 2015

Hi Gillian, thank you for your question.

As you haven't yet taken delivery of the car i believe you are within your rights to call the finance company and inform them that you now don't wish to go ahead with the purchase due to the dealer taking 3 days to fix the issues with the car. Hopefully they haven't yet released the funds to the dealership. Do you have a copy of the signed finance documentation?

Just so you know we can often beat rates offered by car dealerships. If you wish please make an application when you're ready and if approved you can choose a car from any reputable dealer and we also provide a no obligation quote. Kind Regards, Rachel
Tim Carpenter
Tim Carpenter Car Finance Expert

Liked by 12 People

Hi There, i purchased a car on a whim yesterday and i have changed my mind. I can't afford to pay back the amount each month and don't want to pay back £2000 over 4 years on a £5000 loan. It doesn't seem right.

I feel really silly but wha

Asked by Tanya S
September 8, 2015

Hi Tanya, apologies for the delayed response. You are indeed correct in thinking that you have 14 days to reject the hire purchase agreement. This is called the "Cooling off period" and under the Consumer Credit Directive it gives you the right to withdraw from the finance agreement. You'll need to call the finance company asap and instruct them that you do not wish to proceed with the agreement. They can ask the supplying dealer to "un-wind" the deal and return the funds to them along with your deposit. The dealer however isn't obliged to give you your deposit back as they may well have spent time & money preparing the car for collection. The lender also can't force the dealer to return the funds if the car is in a roadworthy condition. If the dealer isn't prepared to do this you'll have to settle the finance agreement with another source of funds within the 14 days. If you believe there has been any wrong-doing by the lender or the dealer you can refer your complaint to the financial ombudsman service. I hope this clears up the situation and if you need car finance in the future please don't hesitate to use our service by applying here. Kind Regards, Rachel

Can't find the right answer?

Our Manchester based team are ready to help you.


* The UK's number one online car finance broker by unique users to the website. Based on Hitwise data – 1,746,657 to CarFinance 247 vs. 666,020 for nearest competitor. January to December 2019.

96% of our customers recommend us: † Based on feedback left on independent review site Reviewcentre. May 2019.

CarFinance 247 is a trading name of CarFinance 247 Limited, a credit broker and insurance intermediary, and 247 Money Group Limited (247 Money), a lender. Both companies are part of the 247 group of companies.

CarFinance 247 is authorised and regulated by the Financial Conduct Authority under reference number: 653019. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 06035525. Data Protection Registration Number Z1897658.

247 Money is authorised and regulated by the Financial Conduct Authority. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 10989530. Data Protection Registration Number ZA456831.

All finance is subject to status and income. Written quotations on request. CarFinance 247 can introduce you to a limited number of finance providers, including 247Money, based upon your credit rating and will receive commission for such introductions.

† We do not charge a fee for arranging the finance, however some of our lenders may charge a fee. Your account manager can provide more information on this

This site uses cookies so that we can provide you with the best user experience. By continuing to use the site you are consenting for cookies to be used. Further information on cookies and how you can disable them is available on our cookie policy.