Yes, you can end a regulated hire purchase agreement by giving notice before the final payment falls due, while the agreement is still in place. You do not have to wait until you have paid half. You must return the car and may still owe money, including a shortfall towards half the total payable, arrears or charges for failing to take reasonable care of the car. You do not have to clear that balance before giving notice. Ask us for an itemised calculation. If you have paid more than half, voluntary termination does not refund the extra payments.
If you're worried about making your next car finance payment, contact AutoMoney Trust as soon as possible, ideally before the payment is due. Speaking to us early allows us to understand your circumstances and discuss the support or options that may be available before your account falls into arrears. Taking action early can help reduce the impact on your finance agreement and improve the likelihood of finding a suitable solution.
Depending on your circumstances, we may be able to discuss short-term payment arrangements or signpost you to free, independent debt advice if appropriate. Speaking to us before you miss a payment can often lead to better outcomes than waiting until your account falls into arrears.
Missing car finance payments can affect your credit file, result in default interest or other applicable charges, and, if the situation remains unresolved, could put your hire purchase agreement at risk. Acting early may help minimise these impacts and keep your agreement on track.
At AutoMoney Trust, we treat every conversation in confidence and are committed to treating customers fairly. If you're experiencing financial difficulties, we'll work with you to understand your circumstances and explore a suitable way forward wherever possible.
Continued missed payments can lead to arrears, damage your credit file and, in some circumstances, repossession of the vehicle.
If you fall behind on your car finance payments, AutoMoney Trust will contact you to understand your situation and discuss the support available. If you are struggling to maintain your payments, it is important to get in touch as early as possible, as we may be able to help you understand your options and prevent your account from falling further into arrears.
Ongoing missed payments may result in default interest, reminder letter fees, and information being reported to credit reference agencies. A record of missed payments could remain on your credit file for up to six years, which may affect your ability to obtain credit in the future.
If car finance arrears remain unresolved, your hire purchase agreement may be terminated and steps may be taken to recover the vehicle. However, under UK law, if you have paid at least one-third of the total amount payable under your agreement, a court order is generally required before the vehicle can be repossessed.
If the vehicle is repossessed and sold, you may still be responsible for any remaining balance if the sale proceeds do not cover the amount outstanding on your car finance agreement.
If you are experiencing financial difficulties, please contact AutoMoney Trust as soon as possible. You can also visit our Existing Customers page for more information.
No, AutoMoney Trust does not charge early repayment fees on its hire purchase finance agreements, meaning you can complete your car finance settlement without paying additional penalty charges.
Whether you want to pay off your finance early, reduce your monthly commitments or sell your vehicle, settling your agreement ahead of schedule can provide greater financial flexibility and may reduce the overall cost of borrowing. To better understand how interest affects the total amount you repay, read our guide on what APR means in car finance.
If you're considering early settlement on car finance, you may be entitled to an interest rebate. Under the Consumer Credit Act 1974, customers who repay their hire purchase agreement early generally do not pay all of the interest that would have been charged over the remaining term. This reduces the total amount payable compared with continuing your monthly repayments until the end of the agreement.
If you would like to arrange a car finance settlement, you can request a settlement figure from AutoMoney Trust. This shows the total amount required to repay your finance agreement in full, taking into account any applicable interest rebate. Your settlement figure is valid for 28 days, giving you time to review the amount and decide whether early settlement is right for you.
Settlement policies can vary between lenders. While AutoMoney Trust does not charge early repayment fees, some providers may apply early settlement charges or calculate interest rebates differently. Before choosing to pay off your car finance early, always check the terms of your agreement and understand how your settlement amount has been calculated.
If you are considering a car finance settlement because you want to sell a financed car or part exchange your vehicle, our guide on Selling a Financed Car explains the process, what happens with outstanding finance, and the options available.
Late or missed car finance payments may be reported to the main UK credit reference agencies and could remain on your credit file for up to six years. This can negatively affect your credit score and may make it more difficult or more expensive to access credit in the future, while keeping your payments up to date can help maintain a healthier credit profile.
A missed payment may affect future borrowing decisions, with lenders potentially offering different terms, higher interest rates, or declining an application depending on your overall financial circumstances. The impact can vary depending on how late the payment is, whether the account returns to good standing, and if arrears continue over time.
If you are experiencing difficulties keeping up with your car finance payments, it is important to contact AutoMoney Trust as soon as possible. Speaking to us early gives the opportunity to understand your situation and discuss what support or options may be available before payments are missed.
Keeping your finance agreement up to date and making payments on time can help maintain a healthier credit profile. For more detail on how lenders review applications, see our guide on credit checks for car finance.
