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How can I end my finance agreement?
Updated: Monday, 18 September 2023
Thinking of ending your Conditional Sale (CS) finance agreement? Read on as we look into the three options that could be suitable for you, so you can decide on the best way to proceed.
Which option is best?
We can’t give you advice on the best option, but we can work through all of your options over the phone. This includes giving you an estimate of the amount you’ll owe us, so you can weigh up which one works best for you.
If you don’t make your payments and your arrears increase to an unsustainable level, we may need to send you a Default Notice and end the agreement. This may be the most expensive route so if you need to end the agreement, please consider the following options:
Thinking of ending your Conditional Sale (CS) finance agreement? Read on as we look into the three options that could be suitable for you, so you can decide on the best way to proceed.
Which option is best?
We can’t give you advice on the best option, but we can work through all of your options over the phone. This includes giving you an estimate of the amount you’ll owe us, so you can weigh up which one works best for you.
If you don’t make your payments and your arrears increase to an unsustainable level, we may need to send you a Default Notice and end the agreement. This may be the most expensive route so if you need to end the agreement, please consider the following options:
Your options
Your options
1. Voluntary Termination
1. Voluntary Termination
At any point during the term of your CS finance agreement with us, it is your statutory right to give us written or verbal notice that you want to return the vehicle and end the agreement. This is called ‘Voluntary Termination’. This means you’ll only need to pay half of the original agreement amount, plus any outstanding payments (inclusive of any previously agreed payment breaks or payment holidays) and charges. This is otherwise known as the ‘Half Rule’.
We will need to collect the vehicle from you including the keys and important documents. We’ll then agree a date, time, and place that suits you, and we’ll collect it free of charge.
We’ll inspect the vehicle to check it is in good condition based on its age and the mileage. If we need to repair the vehicle, we may need to add additional charges to your account for the repair work or loss of value.
The amount you are required to pay under voluntary termination is set out in your contract, plus any outstanding payments or charges as mentioned above. We’ll then agree an affordable, sustainable payment plan with you to clear the outstanding balance (if applicable).
What is the process for this option?
At any point during the term of your CS finance agreement with us, it is your statutory right to give us written or verbal notice that you want to return the vehicle and end the agreement. This is called ‘Voluntary Termination’. This means you’ll only need to pay half of the original agreement amount, plus any outstanding payments (inclusive of any previously agreed payment breaks or payment holidays) and charges. This is otherwise known as the ‘Half Rule’.
We will need to collect the vehicle from you including the keys and important documents. We’ll then agree a date, time, and place that suits you, and we’ll collect it free of charge.
We’ll inspect the vehicle to check it is in good condition based on its age and the mileage. If we need to repair the vehicle, we may need to add additional charges to your account for the repair work or loss of value.
The amount you are required to pay under voluntary termination is set out in your contract, plus any outstanding payments or charges as mentioned above. We’ll then agree an affordable, sustainable payment plan with you to clear the outstanding balance (if applicable).
What is the process for this option?
You inform us you want to return the vehicle and end the agreement – this can be done in writing or verbally over a telephone call with our Contact Centre Agents
We arrange to collect the vehicle free of charge
We’ll confirm how much you owe us
We’ll agree an affordable payment plan to clear any outstanding amount you owe
You inform us you want to return the vehicle and end the agreement – this can be done in writing or verbally over a telephone call with our Contact Centre Agents
We arrange to collect the vehicle free of charge
We’ll confirm how much you owe us
We’ll agree an affordable payment plan to clear any outstanding amount you owe
2. Handback option
2. Handback option
With this option, you agree to hand back the vehicle to us so we can sell it. The sale proceeds will be applied to the CS agreement to reduce the final outstanding balance.
We will need to collect the vehicle from you, including the keys and important documents. We’ll then agree a date, time and place that suits you, and we’ll collect it free of charge.
We’ll inspect the vehicle to check that it is in a good condition based on its age and the mileage. If we need to repair the vehicle, we may need to add additional charges to your account for the repair work or loss of value.
We’ll sell the vehicle and deduct the sale value from the total original agreement amount.
If there is an outstanding balance, we’ll provide you with an early settlement amount. If you can pay this within the timescales provided, you’ll clear the agreement, otherwise we’ll agree an affordable, sustainable payment plan with you to clear the full remaining balance.
What is the process for this option?
With this option, you agree to hand back the vehicle to us so we can sell it. The sale proceeds will be applied to the CS agreement to reduce the final outstanding balance.
We will need to collect the vehicle from you, including the keys and important documents. We’ll then agree a date, time and place that suits you, and we’ll collect it free of charge.
We’ll inspect the vehicle to check that it is in a good condition based on its age and the mileage. If we need to repair the vehicle, we may need to add additional charges to your account for the repair work or loss of value.
We’ll sell the vehicle and deduct the sale value from the total original agreement amount.
If there is an outstanding balance, we’ll provide you with an early settlement amount. If you can pay this within the timescales provided, you’ll clear the agreement, otherwise we’ll agree an affordable, sustainable payment plan with you to clear the full remaining balance.
What is the process for this option?
We arrange with you to collect the vehicle free of charge
We sell the vehicle and deduct the sale value from the total original agreement amount (minus any repair charges, if applicable)
We’ll confirm how much you owe us
You pay the settlement amount, or we’ll agree an affordable payment plan to clear any outstanding amount you owe
We arrange with you to collect the vehicle free of charge
We sell the vehicle and deduct the sale value from the total original agreement amount (minus any repair charges, if applicable)
We’ll confirm how much you owe us
You pay the settlement amount, or we’ll agree an affordable payment plan to clear any outstanding amount you owe
3. Early settlement
3. Early settlement
At any point during the CS agreement, you can ask us to provide an ‘Early Settlement Figure’ (ESF). This is the amount you would need to pay us to fully settle the agreement. The ESF will include a rebate of interest, which is future interest you’ll no longer have to pay, but will also include any outstanding payments (including payment breaks or payment holidays) plus 1 month and 28 days interest charged for settling the agreement early.
When we give you an Early Settlement Figure it is valid for 28 days. If you pay the full settlement amount by the date provided, we will end the agreement and transfer legal ownership of the vehicle to you*.
*As part of the Early Settlement process, we might agree you can sell the vehicle privately to a reputable dealer, to raise funds towards your Early Settlement Figure. However, if there is a shortfall between the amount you sell for and the full Early Settlement Figure, you will need to cover that, so we still receive the total settlement amount.
What is the process for this option?
At any point during the CS agreement, you can ask us to provide an ‘Early Settlement Figure’ (ESF). This is the amount you would need to pay us to fully settle the agreement. The ESF will include a rebate of interest, which is future interest you’ll no longer have to pay, but will also include any outstanding payments (including payment breaks or payment holidays) plus 1 month and 28 days interest charged for settling the agreement early.
When we give you an Early Settlement Figure it is valid for 28 days. If you pay the full settlement amount by the date provided, we will end the agreement and transfer legal ownership of the vehicle to you*.
*As part of the Early Settlement process, we might agree you can sell the vehicle privately to a reputable dealer, to raise funds towards your Early Settlement Figure. However, if there is a shortfall between the amount you sell for and the full Early Settlement Figure, you will need to cover that, so we still receive the total settlement amount.
What is the process for this option?
Contact us to ask for an early settlement figure
We’ll send you an ESF, the expiry date and instructions for payment
Make payment by the settlement expiry date
You become the legal owner of the vehicle and your agreement with us ends
Contact us to ask for an early settlement figure
We’ll send you an ESF, the expiry date and instructions for payment
Make payment by the settlement expiry date
You become the legal owner of the vehicle and your agreement with us ends
How do the options compare?
How do the options compare?
Voluntary termination
- You return the vehicle to us
- You only have to pay half the original agreement amount, plus any outstanding payments and charges
- We will check the condition of the vehicle, and apply a standard calculation as set out in your consumer rights to work out how much you owe, including any outstanding payments and charges
- We can agree an affordable, sustainable payment plan with you to clear any outstanding balance.
Handback option
- You return the vehicle to us
- We take full control of the vehicle sale process, including repairing the vehicle if needed
- We seek to achieve the highest sale value possible so we can deduct that from the original agreement amount
- We will confirm how much you owe, including the value of any outstanding payments and charges
- We can agree an affordable, sustainable payment plan with you to clear any outstanding balance.
Early settlement
- If you can pay the total Early Settlement Figure, you keep the vehicle and become the legal owner
- Where you’re clearing the agreement early, you will save money on interest as we’ll deduct any future interest you would have had to pay.
Voluntary termination
- You return the vehicle to us
- You only have to pay half the original agreement amount, plus any outstanding payments and charges
- We will check the condition of the vehicle, and apply a standard calculation as set out in your consumer rights to work out how much you owe, including any outstanding payments and charges
- We can agree an affordable, sustainable payment plan with you to clear any outstanding balance.
Handback option
- You return the vehicle to us
- We take full control of the vehicle sale process, including repairing the vehicle if needed
- We seek to achieve the highest sale value possible so we can deduct that from the original agreement amount
- We will confirm how much you owe, including the value of any outstanding payments and charges
- We can agree an affordable, sustainable payment plan with you to clear any outstanding balance.
Early settlement
- If you can pay the total Early Settlement Figure, you keep the vehicle and become the legal owner
- Where you’re clearing the agreement early, you will save money on interest as we’ll deduct any future interest you would have had to pay.
We're here to help...
Financial difficulties
If you’re experiencing financial difficulties, we want to help. Please take a look at the different support available to you and together we’ll find a solution suitable for your personal circumstances.
Contact us
You can call our Customer Services Team on 0330 555 1230. Please see our contact us page for opening hours.
We're here to help...
Financial difficulties
If you’re experiencing financial difficulties, we want to help. Please take a look at the different support available to you and together we’ll find a solution suitable for your personal circumstances.
Contact us
You can call our Customer Services Team on 0330 555 1230. Please see our contact us page for opening hours.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
