Cancel your finance early
If you are in a finance agreement and want to exit it, you may be wondering what options are available to you.
There are different ways you can exit the agreement, here’s a rundown on the options depending on your type of finance.
Ending a PCP agreement early
If you have paid over 50% of your balance, you can return your car through a Voluntary Termination agreement, where you hand back your car and walk free from the remainder of the finance agreement.
If you haven’t reached that 50% mark yet, you can choose to pay the difference and then enter a Voluntary Termination. If you have paid significantly more than the 50%, you won’t be eligible for any money back.
If you want to end the agreement but till be left with a car, you will need to enquire about your settlement figure and pay that along with any fees which swill include your outstanding finance balance and incorporate the Guaranteed Minimum Future Value of your car, which would have been outlined at the start of the agreement.
Ending a HP agreement early
Ending a Hire Purchase agreement can be done in relatively similar ways to ending a PCP agreement. You can hand the car back through Voluntary Termination if you have paid more than 50% of the agreement. If you haven’t quite paid the 50%, you can pay the remainder, as with the PCP deal.
If you want to be the registered keeper of the car, but terminate your finance agreement, you can pay a lump sum in the form of a settlement figure, the difference is the amount will be set and not based on guaranteed future value.
There are the different ways you can get around and out of a finance agreement. If you are looking to sell your car, or for advice on how to sell your car on finance, get in touch with the team at Kent Car Buyer.