What are my options if I want to end my car finance agreement early?

Updated 1 month ago

You have a couple of options in this situation. Here are all the details:

Voluntary Termination: 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. Although this will be noted on your credit file, it won’t have a negative impact. With the voluntary termination option, it’s also important to note that:

  • To qualify for voluntary termination, you’ll need to have repaid 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.

Voluntary Surrender: The other option is voluntary surrender. This 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. If your car is in good condition and could be sold for a high price, this could greatly reduce what you owe. With this option, it’s important to note that:

  • You’ll still need to repay any remaining balance on your loan after the car is sold. We can help you set up a repayment plan to cover these costs
  • Voluntary surrenders are recorded on your credit file and could make it harder to obtain credit in the future

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