Glossary · Motoring
Voluntary termination
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Definition: Your legal right under the Consumer Credit Act to end a PCP or HP car-finance agreement early once you have paid at least half the total amount payable.
Section 99 of the Consumer Credit Act 1974 lets you hand the car back and walk away once you have paid 50% of the total amount payable (including interest and any fees). If you have paid less than half, you must make up the difference to reach 50%.
The car must be returned in reasonable condition for its age and mileage, or the lender may charge for excess damage. Voluntary termination can be a useful escape route if you can no longer afford the payments.
Primary source: Consumer Credit Act 1974, s99–100; fca.org.uk