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How to return a car on finance – handing back a finance car

If you no longer want your finance car and want to give it back, your options will depend on how far into your contract you are

Car finance

Can I return a car on finance?

Sometimes things change, and you might decide you’d like to return your finance car sooner than planned.

When you sign a car finance agreement, you always have a 14-day cooling-off period during which you can withdraw from your contract before it even begins.

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If you’re further along in your finance agreement, you’ll need to have paid or be willing to pay 50% of your total amount payable to end your agreement and return your car.

If you’re struggling, contract your finance provider - they may be able to help.

Handing back a car on finance – Personal Contract Purchase (PCP)

The total amount payable on your contract will depend on the type of finance you have. Personal Contract Purchase (PCP) deals are based on the depreciation value of your car through the whole contract, with a final ‘balloon payment’ at the end of your contract if you wish to keep the car.

If you’re choosing to end your contract early with a voluntary termination, you’ll have to pay 50% of the total amount payable on your contract – the exact amount in pounds and pence will be specified in your contract.

Once you’ve paid half of your total amount payable, you'll be able to return your finance car. If you’re towards the end of your contract, you might have already covered half of your payments and not have any extra to pay.

You’ll need to let your finance company know – you can usually let it know via email or on its website – you’d like to end your contract, and it’ll calculate how much you owe.

You might also owe other fees on your car, like damage charges, extra mileage allowance, or early termination fees.

Returning a finance car – Hire Purchase (HP)

With a Hire Purchase (HP) car finance deal, you’ll be paying the full value of the car across your monthly payments. To return your finance car before your HP contract ends, you can usually hand the car back and carry on the monthly payments up to the 50% point, but would need to speak to your lender.

If you’re around halfway through your HP finance contract, you might find that you’ve already paid 50% or are close to doing so, so you might not have a huge difference to pay to terminate your contract early.

Like with PCP car finance, you’ll need to notify your car finance provider that you’d like to voluntarily terminate, and it’ll be able to tell you how much you owe. You should be able to hand the car back before the 50% has been paid and maintain the payments up to the 50% mark. Bear in mind, there might be extra charges for damage or early termination fees.

Can I give my car back to the finance company?

You can give your car back to the finance company, but it'll depend on your situation as to what fees you might have to pay. If you’re wanting to hand your car back within the first 14 days, you’ll usually be able to return it easily.

If you’re further into your finance deal, there’s a good chance you’ll have to pay some of the difference to ensure you’ve paid half of the total amount payable. It's best to talk with your finance company to find out what can be done in your personal situation.

Can I end my car finance early?

You can end your car finance early if you’ve covered half of what you owe on your car. You’ll need to speak to your lender about your specific situation and talk through your options.

How do I return a finance car I can’t afford?

If you’re struggling to afford your car, contact your finance provider and let them know – it will talk you through your options.

Learn more about car finance: