Car finance voluntary termination (VT)
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.