What is voluntary termination on car finance?
Voluntary termination in car finance is when you voluntarily end your car finance agreement. Voluntary termination can be used in hire purchase and personal contract purchase agreements, however, you will be liable for interest, charges plus what you owe on the car.
How does voluntary termination work?
To cancel your car finance agreement through a voluntary termination, you first need to notify your car finance provider in writing. You will be liable for paying 50% of the car finance agreement so you must have paid half of the balance before you decide to terminate. You will also be required to pay any arreas or additional charges, including any repairs that are considered beyond fair wear and tear.
