Finance car

Amie1304

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

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