Paid over half your car finance?

There is a provision in most regulated agreements that rarely gets explained at the point you would want it. Here is what it is and when it applies.

Understand your options before the dealer explains them

  • What the halfway figure is, and where to find it on your agreement
  • How ending early differs from handing a PCP back at the end
  • What 'reasonable condition' means in practice, and how to evidence it

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JE Lead Consultancy Limited
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What the halfway point actually means

1

It is a statutory right, not a favour

Regulated hire purchase and PCP agreements carry a right to end the agreement early. It comes from the Consumer Credit Act, not from the finance company’s goodwill.

2

Half the total amount payable

The threshold is half of the total amount payable under the agreement, not half the payments made. That figure is printed on your agreement and includes fees and any final payment.

3

The car goes back

You return the vehicle in reasonable condition for its age and mileage. Reasonable condition is the part people underestimate, so it is worth photographing everything.

The questions we get asked most

What if I have paid less than half?

You can still end the agreement, but you would need to bring the total paid up to the halfway figure first. Some people find that cheaper than continuing; many do not.

Does it hurt my credit file?

Ending an agreement this way is recorded. It is not the same as a default, and it is not the same as settling in full either. It is worth knowing which mark you are choosing before you choose it.

Is this the same as handing a PCP back at the end?

No. Handing a PCP back at the end of the term is one of the ordinary end-of-agreement options. This is a right to end it early, part way through.

One email a week about running a car for less

Written plainly, no jargon, and you can stop at any time.

Understand your options before the dealer explains them

  • What the halfway figure is, and where to find it on your agreement
  • How ending early differs from handing a PCP back at the end
  • What 'reasonable condition' means in practice, and how to evidence it

Free. Choose email, text, or both. Unsubscribe from any message.

MotorMoola.comQall Limited and the partners listed hereOur Current PartnersTek2Serve Limited
JE Lead Consultancy Limited
would like to send you information and offers about motoring, vehicle finance and claims-related services. Please choose below how you would like to hear from us.

We will use your details to send you marketing and information about motoring-related products and services, including vehicle finance and claims-related services. Where you opt in, we may also share your details with the partners listed hereOur Current PartnersTek2Serve Limited JE Lead Consultancy Limited so they can contact you using the methods you select. You can withdraw your consent at any time.

Your details are stored securely. You can ask to see the record we hold, or withdraw any of these permissions, at any time.