If you`re already going most of the way through a PCP financing contract, you may be able to use voluntary termination to terminate the contract and make the car – nothing else to pay. To use it, you must have paid at least half of the “payment amount” – that`s the down payment amount, all the monthly payments, the optional final payment and all the interest and fees that will be deducted. Be aware that this is a very different figure from half the original price of the car. If you stop contracts prematurely, remember that the condition of the vehicle is important. General wear is acceptable, but you will be charged for repair costs for things like broken wing mirrors or larger scratches. Before you make a financing deal, it`s worth making your money – and always reading the fine print. Some financing agreements charge extra to cancel prematurely, so it`s best to know about this early on. These are described in detail in the treaty. What complicates matters further is that things are not being followed for the remaining financing, but it is likely that additional fees and additional fees will be added, even if the lender sells the car as much as possible. Therefore, it is likely that one of the other options, such as partial car sharing or the use of voluntary termination, are much smarter options. Voluntary rebate means that you voluntarily return the car to the financial company, but you still have to pay what you owe — your debts don`t disappear by car.
If you sign a voluntary handover form, the financial company sells the car and the money they receive goes into your debts, but you still have to pay it back until all the debt is repaid. The termination of your financing contract may be the best option if you cannot afford to pay, as this will affect your ability to obtain credits in the future. Although the law covers both PCP agreements and HP agreements, their operation is different. So let`s look at each one after the other. If you have already paid half the cost of the car or if you represent the difference between what you have already paid and half the cost of the car, you have the right to return the car to the financial services provider under the Consumer Credit Act of 1974.