When you sign up to a car finance agreement, you agree to make repayments over a set period of time. But during the length of the agreement things can change and you may want to pay off your car finance agreement early. Reasons could include the following:
You’re moving away and no longer need your car
The cost of the monthly payments has become too expensive
You hope to save money by paying off the finance agreement early
It is possible to end a car finance agreement early but there are rules you need to follow.
If you’re still in the first 14 days of the finance agreement, you’re still within what’s known as the cooling off period. In such cases, under the terms of the Consumer Credit Act 1974, you’ll be able to end the agreement by paying your loan amount off in full.
However, if you’ve gone past this 14-day period you’ll need to check the terms and conditions of the finance agreement to calculate the best way of ending it early.