First, the type of financing you have will influence your options when it comes to getting out of a car loan. The first step is to confirm exactly what type of financing you have, is it a personal contract (PCP), a lease (HP) or did you finance it with a PCH (Personal Contract Hire) contract?? If you decide to resign before reaching half-time, you must pay an intermediate amount between what you have already paid and the half point. However, remember that if you paid more than half and want to return the car, you won`t get any of that extra amount back – in theory, even if you had repaid 90% of the total financial balance. In part, however, you exchange the car, and it should be a different story. There is another way you might consider getting rid of credit if it`s under PCP or HP conditions. It is called the “half rule” and means that once you have paid 50% of the loan (including fees and interest) then you can voluntarily cancel the return of the vehicle without negative effects apart from a mention on your credit file. This note is unlikely that your ability to get financing in the future, unless you are a repeat user of voluntary termination where lenders may not be so eager to finance, although this is very rare. Please remember that if you exceed 50%, you say that you have repaid 70% and you voluntarily resign, you do not see the value of the additional 20%, and all this is from above for the financial company – not you – so if you do of your own free will the best to do this when 50% have been paid. Finally, you must always maintain payments before requesting a voluntary termination. If you missed a payment, the financial company has more rights, and your credit file reflects the missed payments. Once you have received the billing figure, you can pay it to become the owner or sell the car to a car dealership, for example, who would pay the balance to the financial company.
If you are selling the car to a dealership, be sure to speak first to the financial company, as it is not your car for sale. Assuming that the trader pays the financial company directly, most companies should be satisfied with this agreement. Check your financial agreement to see if payment protection insurance (PPI) has been added. Most companies don`t like that you terminate a deal (see below), so you can expect them to look for ways to reduce your monthly payments to make them more affordable – possibly by distributing the loan over a long period of time.