Yes, under section 99 of the Consumer Credit Act 1974, you have a legal right to voluntarily terminate your hire purchase agreement once you have paid at least 50% of the total amount payable. If you have paid less, you can still apply, but you would need to cover the difference. You must return the vehicle in reasonable condition and clear any arrears. Voluntary termination may still appear on your credit file. If you are unsure whether it is right for you, speak to our team before proceeding, as other options may be available.
If you think you may struggle to make your next car finance payment, contact AutoMoney Trust as soon as possible, ideally before the payment is due. Reaching out early gives our team time to discuss your situation and may open up support options such as a short-term payment arrangement or signposting to free debt advice services. Missed payments can affect your credit file and lead to further fees and default interest, so acting quickly helps protect your agreement. We treat every conversation in confidence and will work with you to find a sustainable way forward.
If you fall behind on payments, AutoMoney Trust will contact you to discuss your situation. Continued missed payments can result in default interest, reminder letter fees, and a record on your credit file for up to six years. If arrears remain unresolved, the agreement may be terminated and the vehicle could be repossessed, though under UK law, once you have paid one-third of the total amount payable, we need a court order to take the car back. You may still owe money after repossession if the resale value does not cover the outstanding balance. For support, visit our Existing customers page or contact us early to avoid this.
AutoMoney Trust does not charge early repayment fees, so you can settle early without penalty. Under the Consumer Credit Act 1974, you are also entitled to an interest rebate when you repay ahead of schedule, which reduces the total amount owed compared with continuing the agreement. To settle early, request a settlement figure from us, this is valid for 28 days and represents the full amount needed to close your agreement. Other lenders may apply early settlement charges or different rebate calculations, so always check your agreement before settling. For wider information around selling a financed vehicle, see our guide on Selling a Financed Car.
Late or missed AutoMoney Trust car finance payments may be reported to the main UK credit reference agencies and can remain on your credit file for up to six years. This may lower your credit score and make it harder to borrow in the future, with lenders potentially offering higher rates or declining applications. The impact depends on how late the payment is and whether arrears continue. If you are struggling, it is better to contact us early than to miss a payment, as we may be able to help. For more detail on how lenders review applications, see our guide to credit checks for car finance.
