We have spoken in the past about how to initiate a voluntary termination from your car finance plan. The definition of this is when you decide to exit a finance plan prior to the planned expiration date, with you having the legal right and justification to do so under the circumstances at that time. But what are those rights for the benefit of readers who may be thinking about a voluntary termination themselves? Let’s explore this issue in more detail …
There are a number of rights that you have which can bring a car finance plan to an end via voluntary termination, with the finance company in question having to accept your decision. One such scenario is when you simply no longer have the money to keep up payments. It could be because you have lost your job, or due to an unexpected change in personal circumstances which suddenly means that your existing plan is not feasible. In any event, should you find yourself in a situation where you simply cannot afford the monthly payments, and you can produce evidence to demonstrate this, then you would have the right to apply for – and likely receive – a voluntary termination.
Another situation is when the car itself does not match what you signed up for. Now, you could bring this to the attention of the dealership at an earlier point, but if you have settled for the vehicle you received, only to realise that it is not capable of lasting the duration of a finance agreement, then this will give you a dilemma. Do you spend a lot to get it fixed when it was not at 100% at the time you bought it, or could you opt for a voluntary termination, given that its faults were not fully explained to you beforehand? This is another example of when a voluntary termination is a real possibility, and a decision that the finance company has to legally respect and accept.
That being said, you also have to respect the terms and conditions that the finance plan has in place. In this aspect, the most notable point concerns how far into an agreement you would have to be before you would be able to request a voluntary termination, because otherwise anybody could just decide one day that they’re fed up with their vehicle and try to opt out. This is why a minimum 50% repayment of what remains outstanding from the overall cost is generally required, though if you are relatively close to the expiration date, this percentage might drop. In some cases, you may not have to pay anything extra. But it is worth knowing this information before going down the voluntary termination route, as well as recognising that you need to provide supporting evidence that backs up your decision before it could be accepted.
Learn more about voluntary termination by contacting us or viewing this page www.pcpmissold.co.uk.