How do I End My Current Finance Agreement?

Tim Carpenter
Written by Tim Carpenter

If you have previously used CarFinance 247 to take out finance and wish to end the agreement, you will need to contact your finance provider directly.

After signing a contract for car finance, you have a “right of withdrawal” (sometimes popularly called a “cooling off” period) from its terms and conditions within 14 days.

You still need to repay any credit – plus interest – payable during the period until your formal notification to exercise your right of withdrawal.

These rights are guaranteed by the provisions of the Consumer Credit Act 1974. It doesn’t allow you to change your mind simply because you don’t like the car itself and any deposit you might have made the car dealer as a down payment is outside the scope of the credit agreement and unlikely to be refunded.

When you exercise your right of withdrawal, the finance company needs to recover the funds it has already paid over to the car dealer concerned. Difficulties in recovering that amount may arise if the vehicle has been returned damaged – with the result that you may have to pay for the damage that occurred.

When you have formally ended any current agreement, you may apply for car finance a new to buy the vehicle of your choice from any reputable dealer, with your existing credit score taken into account, along with any income you are earning from employment or self-employment.

If you are past the “cooling off” period and wish to end your agreement, you will need to settle the finance. This involves asking the loan provider for a settlement figure, which is the amount (including interest) that you have left to pay on your finance agreement. You must pay off the entirety of this settlement figure in order to end the agreement.

Another option, if you have repaid at least 50% of your total loan amount (including interest) is to opt for Voluntary Termination, which is where you hand the car back to the finance company and consequently end the finance agreement.

Get a quote
No impact on your credit score
Rates from 7.9% APR. Representative APR 20.7%

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Tim Carpenter
Tim Carpenter Car Finance Expert
5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 7.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 20.7%, an annual interest rate of 20.7% (Fixed) and a deposit of £0.00, the amount payable would be £168.48 per month, with a total cost of credit of £3,608.67 and a total amount payable of £10,108.67. 

We look to find the best rate from our panel of lenders and will offer you the best deal that you’re eligible for. We don’t charge a fee for our service, but we do earn a commission. This does not influence the interest rate you’re offered in any way.

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CarFinance 247 is a trading name of CarFinance 247 Limited. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. (Registration Number 06035525).

CarFinance 247 is authorised and regulated by the Financial Conduct Authority for insurance distribution and credit broking (Firm Reference Number: 653019). CarFinance 247 is registered with the ICO (Registration Number Z1897658).

Finance is subject to status and is only available to UK residents aged 18 and over. Written quotations are available on request.

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