If you wish to terminate the contract, you must pay the financial company the money you still owe to the car within 30 days. In addition, credit contracts for loans of $60,260 and loans secured by land are excluded from the right of withdrawal within 14 days. If you have already received money, you must repay it – the lender must give you 30 days to do so. If you have not signed the credit contract, you owe nothing. Be warned: although you have a legal right to use VT and should not affect their creditworthiness, financial companies are irritated and may charge you excessive damages and allowances and mileage penalties that they could have waived under normal circumstances. VT is designed as a protection for you, your financial situation should change, not just a tool to make a car at an early stage. As a result, if you have used VT several times, you may also have trouble taking financing in the future, as using these funds can cost financial companies money. The good news is that there are opportunities to terminate a car finance contract. The exact way and cost depends on whether the agreement is PPC or HP, but in both cases you can expect to have to pay sooner than you want to terminate the contract. Note that if the car is leased on a personal contract (PCH), your rights are much more limited and it can be much more difficult to terminate the contract prematurely. You cannot terminate the following types of credit contracts: Consider bankruptcy. Talk to a bankruptcy lawyer about your options if the loan is only part of your financial problems.
Chapter 13 Bankruptcy will free you from most debt obligations. It is important to remember that the voluntary termination of your car financing contract will not be refunded. So if you paid 65% of the total amount of financing, you will not have repaid the 15% more you paid. A lender must assess your creditworthiness before offering you a credit contract. Sometimes the supplier of the goods or services you buy arranges the credit contract. If you wish to terminate your financing contract and have repaid more than half or 50% of the total financing to the financial company (including interest and fees), the process should be relatively straight. If you haven`t repaid the 50 percent, you can still terminate the agreement prematurely by paying the difference, which is often called balloon payment. If your living conditions change after you finish financing the car and you want to terminate your contract, don`t worry about being able to end your self-financing prematurely! The PcP (Personal Contract Purchase) and Hire Purchase (HP) financing contracts can be terminated prematurely if you cannot continue payments for any reason.