How do I end my car finance agreement early?

Updated 6 months ago

If you’d like to end your car finance agreement early, you have a few options:

1. Paying off your loan early

If you'd like to keep the car, you can pay off your loan early. If you have a hire purchase agreement, you can do this either through our website or app, or by getting in touch with us. You can follow the steps here to pay off your loan via the Zopa app.

If you have a personal contract purchase agreement, please contact us if you want to pay off your loan early.

2. Returning the car to us

If you no longer want to keep the car, you have a couple of options – voluntary termination (VT) and voluntary surrender (VS). You can email us at repayments@zopa.com and let us know which option you want to choose. Keep in mind that whichever option you choose, there are fees for collecting, inspecting and selling the car, which we'll add to your account balance.

Voluntary termination

Under Section 99 of the Consumer Credit Act 1974, you have the right to voluntarily terminate your car finance agreement at any time. This means you return the car to us, and we’ll sell it at auction. With the voluntary termination option, it’s important to note that:

You’ll need to repay 50% of the total amount payable. The total amount payable is the amount you borrowed, plus interest and fees.

You’ll also need to pay for any damages to the car beyond normal wear and tear. If you have a personal contract purchase agreement, you’ll also be charged if you go over your mileage limit.

Voluntary surrender

Voluntary surrender involves you returning the car to us, we’ll then sell it at auction and deduct the sale price of the car from your loan balance, minus any admin costs such as auction fees. You’ll still need to repay any remaining balance on your loan.

If your car is in good condition and could be sold for a high price, this might be an option to explore as this could greatly reduce what you owe.

Please note: if you choose the voluntary surrender option, it will be recorded in your credit report and may impact your ability to obtain credit in the future.

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