Car finance voluntary termination (VT)

Voluntary termination advice form Socialmotors

What is a voluntary termination?

Voluntary termination (VT) means you are voluntarily ending a finance agreement early. You can end your agreement with a car finance company for many reasons such as; You are leaving the country, your financial situation has declined or you simply do not wish to continue with the agreement.


Each finance company work differently when executing voluntary terminations, therefore it is recommended you ensure you understand the company’s terms and conditions.



How to voluntarily terminate a car finance agreement

You have the right to voluntarily terminate your finance agreement once you have paid off 50% of the monies owed (this includes interest and any fees), without any financial penalties being imposed as this is your legal right.


This is naturally subject to your vehicle being handed back to the finance company without any damage, still being fit for purpose and within any limitation of mileage stipulations that you agreed.


As long as you have made every payment on time, including your final termination payment and you do not have arrears, voluntary termination of the vehicle will not be recorded and will not have any negative effects on your credit file.


Once you have executed a voluntary termination (VT) you are then free to apply for another car finance agreement. At Socialmotors we often help people who have recently performed a VT. We have over 20 finance lenders on our panel who provide solutions for people with excellent, good, poor or even bad credit profiles.


We have thousands of vehicles available and also buy to order, whether you are looking for a car, van, taxi, motor home or even a caravan, we can help!

Application process

Make an application online

Apply now or call us, one of our experienced advisors will take some basic details for our lenders to review. If approved you will be offered a credit limit for your new car.

Choose your car

Once you have your credit limit, one of our advisors will assist you in choosing your new car from our showroom – we have over 1000 vehicles available in group stock, at this stage you will be able to discuss your needs and establish the car you want.

Documents and Delivery

We will now prepare your new car for delivery and get it to you usually within 48 hours, giving you a free 12 month comprehensive warranty & 12 months MOT. Once your car arrives, if your happy you sign your finance documents.

Application Criteria

Do you meet the hire purchase car finance application criteria?

To be eligable for car finance all you need is to…

  • Be aged 18 or over
  • Hold a full UK/EU driving licence
  • Be UK resident for 3 years
  • Have a Full time, part time job, be self-employed
  • Not bankrupt

Please note: if your income is 100% benefits you must be in receipt of a high rate benefit like DLA or PIP to apply for bad credit car finance.

What our customers think…

Scott Royle
Scott Royle
20:54 22 Feb 19
Really happy with my car and great service car delivered by a really nice bloke and everything felt very personal
Gayle Eaton
Gayle Eaton
12:33 01 Aug 17
Very good service very happy
kim summers
kim summers
13:30 13 Jun 19
Received my new car yesterday..... delivered all the way to Hull..... the gentleman who delivered it was very polite.....A big shout to David for all the hard work and patience finding me a nice car...... I am absolutely thrilled with it........ I would thoroughly recommend this company to anyone, David was very friendly and was helpful through the whole process from beginning to end and would hesitate to recommend this company to my family and friends, thank you 😊
Mark Dean
Mark Dean
20:20 03 Mar 21
I had bad credit through a divorce this company took the challenge and came up with the car I wanted at the price that was well in My budget.The agent Dave was more of a mate then advisor was gen down to earth and honest and did his best not just 9~5 good service would use again and reccomend to excellent
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