Finance car

I am ending my contract early and handing my car back to the finance company. They are looking for me to pay £196 for gap insurance I took out at the start of my agreement. I spoke to my dealership who told me It was £300 at the start and I pay this monthly and that would be what I had left to pay, but I’m only 3 months away from the end of my agreement anyway (Feb). So I have only paid £104 of it ? It doesn’t seem right to me. Does anyone know if I have to pay this? Or surely once my agreement with the finance company has ended that ends as well?


  • Nearlyold
    Nearlyold Posts: 2,287 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    edited 11 November 2019 at 7:57PM
    Is this HP or Conditional Sale based PCP and are you using Voluntary Termination to hand the car back early (having paid 50% or more). If so your borrowing for the GAP policy may have been set up as a sub loan on a personal loan type basis with no VT rights, ie you can't walk away without paying the full cost of this sub loan
This discussion has been closed.
Meet your Ambassadors


  • All Categories
  • 343.1K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.2K Work, Benefits & Business
  • 607.9K Mortgages, Homes & Bills
  • 173K Life & Family
  • 247.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards