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
February 27, 2012

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

My monthly budget is

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Rates from 8.9% APR. Representative APR 19.9%

My monthly budget is

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Rates from 8.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £10,000 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £255.50 per month, with a total cost of credit of £5,329.80 and a total amount payable of £15,030.

We look to find the best rate from our panel of lenders and offer you the best deal that you're eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Amount to borrow

To pay over

5 years

Assuming your credit profile is:

Total cost of credit	£ 2000
Total repayment	£ 2000

48 monthly
payments of

£ 245 98

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Rates from 9.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £25,000 over 48 months, £3,750.00 deposit, on PCP, with annual mileage of 8,000pa, and a representative APR of 11.9%, an annual interest rate of 11.9% (Fixed), the amount payable would be £394.51 per month, an optional final payment of £7,194.33, with a total cost of credit of £9,912.36 and a total amount payable of £28,444.33.

We look to find the best product from our panel of lenders and will offer you the best deal that you’re eligible for. We earn a commission for providing our services, but this does not influence the interest rate you’re offered in any way.

Voluntary Termination (VT) related questions

Thanks Rachel, but would they action any kind of repossession or withdraw/change my agreement if they knew I was looking to VT. My paperwork just states that I can VT upon 50% of the value paid?

Asked by Derek
February 27, 2012

Hi Derek, No - the finance company can't change the agreement without your written consent so don't worry about that. I'd get up to date with your payments and then inform them you want to VT. You shouldn't have any problems as long as you follow their instructions :-)

Thank you for the fast response! I've called them and they have just said they will send a pack out. They were not intrested in talking about much on the phone other than to reduce my payments. Again thanks for the advice and quick response.

Asked by Kris
February 27, 2012

Hi Kris, unfortunately you won't be able to hand the car back as you're not over half way through the agreement. The only option you have is to get a settlement figure from Santander and hope that you can achieve the same amount via a private sale to clear off the outstanding finance. Kind Regards, Rachel

Hi Rachel, I am in the process of VT'ing my car. It is in good condition has service history and valid MOT only problem is I have lost the MOT certificate, can I be charged for not having the paper certificate?

Asked by Matthew
February 27, 2012

Hi Matthew, you can get a re-print of your MOT certificate from the garage that carried out the MOT. The finance company can also see online via VOSA that the car has an MOT so you wouldn't be charged for the lost certificate :-)

Hi there, would you be able to help with a question? I currently have outstanding finance on my car through Black horse, I was under the assumption it was a HP agreement, but since speaking with BH, they have informed me that it is not HP agreement and ha

Asked by Phil
February 27, 2012

Hi Phil, Thanks for your question. The good news is that with a personal loan the loan is not secured against the vehicle so you can sell the vehicle privately and settle off the finance. I hope this helps. Rachel

Hi I got a car on hp from car giant. i've only had it a year i've paid all payments on time but i've lost my job and want to end it and give the car back. How does that work? will they take the car back and will I still owe them money? Thanks

Asked by Matthew
February 27, 2012

Hi Matthew, May I firstly ask how long your agreement is for? As if you have paid half of the finance you will be able to voluntary terminate the vehicle. However if you are not half way through you will need to pay the difference. Alternatively if you want to keep the vehicle you can request a settlement figure from the finance company (This should be slightly less than what you owe as it reduces the interest). I hope this helps. Rachel

Cheers Rachel Luckily I'm prepared for the £2k hit on the mileage. Should have really thought more about it 3 years ago but when you are faced with a spanking new Audi A5 with all the toys a bit of excess mileage doesn't enter the frame lol! Harsh lesso

Asked by Paul
February 27, 2012

Hi Paul, it may well be worth taking a little legal advice on how best to approach the situation. Have you spoken with your finance company to make a full and final settlement offer of say £200 which sometimes works? Other than that you'd have to speak with a manager within the organisation and give your side of the argument.

Hi there, I am so angry in hindsight that I got a car on finance from Carcraft. We have paid off every month but now we have a daughter the car is useless as its a two seater smart car. But on the finance agreement it states that after we pay back half th

Asked by Rebecca
February 27, 2012

Hi Rebecca, are you actually 30 months of the way through your 60 month agreement? If so, you can hand you car back. If not you'll have to wait until the 50% mark has been reached. Please confirm. Rachel

Hi, I have had a terrible fiat punto evo for 2 years now but still have 3 years to pay. I have the money to pay the 6 months difference to take it upto the 50% stage. Will FGA allow me to do this then VT? I was thinking of phoning them & paying the lump s

Asked by Nigel
February 27, 2012

Hi Nigel, in all honesty i think you'll have to continue paying until you're 50% of the way through the agreement. I could be wrong however, so i'd strongly advise that you call the finance company. Kind Regards, Rachel

I recently handed our car back under a Clause 99 Voluntary Termination. The car has been very well looked after, in perfect mechanical order and the interior was immaculate. I had the car cleaned up and any more serious damage repaired. The exterior was e

Asked by Steve T
February 27, 2012

Hi Steve, i appreciate the question and if i'm being honest i'd get them on the phone and try and settle for £65. It'll save you a lot of time and hassle and it may be the best outcome you'll get. You can contest the charges completely but i don;t know of anyone who has had the charges wiped out. You could be the first though so keep us all posted. Kind Regards, Rachel

Dear Rachel, thank you for your response and as to your question no I never signed another agreement. I just carried on with my direct debit from the bank paying the exact amount of monthly payments.

Asked by Patrick
February 27, 2012

Hi Patrick, was the initial agreement purely a lease agreement or a lease purchase (which gives you the option to buy the car at the end of the agreement)? If it was purely a lease agreement then Black Horse are within their rights to reclaim the vehicle. It just seems strange that no other agreement was signed. In theory after the agreement had finished you should have handed the car back. It may be worth taking some free legal advice and reviewing your lease agreement in detail. Rachel

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