There are many reasons why you want to end your auto financing activities prematurely. For example, it could be you: Early return of the car can be useful if you don`t need it anymore or if you could buy a similar car elsewhere for less than your remaining payments would cost you. The “half rule” is a consumer law that allows you to return your car to the bank that lent you the money if you paid half the rental price. After restitution under this rule, your contract is terminated and you are not responsible for any other payment or to suffer black spots on your credit rating. If you use voluntary termination to terminate your contract, you can simply sign the car with the financial company and leave. Leasing (HP) is a type of credit that is often available from car dealerships. It can give you the convenience of sorting your finances and choosing your car in the same place. As part of an HP agreement, you rent the car, pay an agreed amount usually in monthly refunds and will at the end of the agreement be the rightful owner of the car. The rightful owner of the car is the financial company that gave you the money to buy the car, and you cannot sell the car without the permission of the financial company. The decision to terminate your car financing contract prematurely is called “voluntary termination.” The end of a hp agreement looks like the premature conclusion of a PCP agreement. If you have already refunded more than 50% of the total amount owed, return the car to a dealership to cancel future monthly payments. 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. If you use voluntary termination to terminate your agreement prematurely, it will be displayed in your credit file. You will not give any information on the reasons for the end of the agreement. It will make little or no difference to your overall credit score, so is a much better way to take than missing payments that could have a big impact on your credit file, so it`s hard to lend money in the future. If you pay a pre-payment credit contract, the Consumer Credit Act reduces the total amount you pay. It is really important that you follow the process described above.