Voluntary termination
lets you end an HP or PCP deal before paying off the full amount. This right is protected by
Section 99 of the Consumer Credit Act 1974
, ensuring a fair balance between you and the finance company. To terminate the agreement, you must notify the lender in writing. If you don't, the car may be repossessed through a "voluntary surrender," which could harm your credit. Although voluntary termination will appear on your credit report, it usually doesn’t affect your score. By returning the car on finance on time and avoiding missed payments, you’re showing financial responsibility. However, if you miss payments and the car is repossessed, the finance company may sell it at auction. In this case, you’ll need to cover the costs of repossession and any remaining balance if the car sells for less than what’s owed.