Ending a hire purchase agreement

Ending a hire purchase car finance agreement

To end a hire purchase deal for a car early, you need to have repaid over 50% of the loan bank to the lender. Once you have done this, you then give the vehicle back.

If you would like to end your hire purchase agreement early, but have no yet paid over half the amount owed. You will need to pay the difference before you will be able to hand the vehicle back.  

If you haven’t quite repaid 50 per cent yet, you can make up the difference in a similar manner to ending a PCP finance deal early. You won’t receive any refund if you’ve already paid back more, however.

With hire purchase agreements you also have the option to pay off the balance in full, this is called a settlement figure. This includes your remaining balance and any fees that may be due as a result of you cancelling the agreement.

Your hire purchase contract will show exactly what you will have to pay for ending the finance early.