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.
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.
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.
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.
Car finance can affect your credit score in both directions. Consistent, on-time payments build a positive credit history and may improve your score over the life of the agreement, demonstrating to future lenders that you can manage credit responsibly. Missed or late payments have the opposite effect, they are reported to credit reference agencies and can lower your score, making future borrowing harder or more expensive. Applying for finance also creates a hard credit search, which may cause a small short-term dip. Settling your agreement in full further strengthens your credit profile. For more detail, read our guide on Credit Checks for Car Finance.
