You can settle your PCP finance deal early; however the finance company will require you to pay off the difference between what your car is worth now, and what you still owe in negative equity. Although, you may find that at the end of your term your car is worth more than the Guaranteed Future Value, which means you’ll have some positive equity to contribute towards your next car.
Simply put, the answer is “yes” you can cancel any PCP or HP finance agreement early, you can hand the vehicle back to the car dealers and walk away from the agreement under your legal rights.
You must have paid at least 50% of the total amount you owe that includes any interest and fees acceptable in the terms and the vehicle must be kept in good condition, if you have not taken reasonable care of the vehicle you will not be able to return the car back to the dealers.
If these conditions are met, you can sign the car back over to the dealer through a voluntary termination clause with no more payments to make.