Voluntary Termination of finance

[Deleted User]

I have a 49month contract with Blackhorse finance paying £228 a month. I have 17months remaining. The car is in the expected condition, within allocated mileage and no damage.... can I just hand the car back with no penalty whatsoever due to me paying over 50% of the finance.
I'm after getting a Civic for a cheaper price, but currently owe more than the car is worth so there is no point doing a part-ex.

Thanks in advance

AdrianC

You don't say what kind of finance it is. Is it a PCP, with a balloon payable at the end? If so, is your 50% calculation including that?

If you really are past 50%, then yes.

Mercdriver

ajbucktaylor wrote: »

I have a 49month contract with Blackhorse finance paying £228 a month. I have 17months remaining. The car is in the expected condition, within allocated mileage and no damage.... can I just hand the car back with no penalty whatsoever due to me paying over 50% of the finance.
I'm after getting a Civic for a cheaper price, but currently owe more than the car is worth so there is no point doing a part-ex.

Thanks in advance

Have a look at your finance agreement and see what you have paid so far (A) and what the total amount payable under the agreement (B) is.

Deduct (A) from (B). If what you owe is 50% or less of the total under (B) then yes, you will be able to voluntarily terminate.

Though I think too many people are doing this to get a different car which isn't what the legislation to bring this in for was intended for.

motorguy

ajbucktaylor wrote: »

I have a 49month contract with Blackhorse finance paying £228 a month. I have 17months remaining. The car is in the expected condition, within allocated mileage and no damage.... can I just hand the car back with no penalty whatsoever due to me paying over 50% of the finance.
I'm after getting a Civic for a cheaper price, but currently owe more than the car is worth so there is no point doing a part-ex.

Thanks in advance

As has been said it depends on the contract you have. If its a PCP with a balloon payment, then its likely you're quite a way from the 50% paid marker.

Also, i'd be surprised if you going to save much by swapping out to a Civic?

You made a 49 month finance commitment, what has changed for you?

[Deleted User]

Thanks for the advice, only just got back to this.
I handed it back in December not having to pay anything. It basically saved me £230 a month for 14 months.
If I kept it I would have to either hand it back in Feb 2021 or pay £5k. I handed it back now and bought a different car..... saved around £3k and got a new car.

Markee

We did this last year, we voluntarily terminated a BMW PCP. It was approx 3 years into a 4 year agreement.



If you phone up your finance provider (provided it is a PCP and not HP or lease), they will tell you whether or not you are past the 50% threshold for a VT.


Please note that you MUST ask for a voluntary termination as if you don't it could be construed as another method which WILL cost you money.