Does voluntary termination include deposit?

Customers who elect voluntarily to terminate a contract, must comply with the following: The amount owed comprises everything the customer would have paid if the agreement had run its full course including the deposit, amount borrowed, interest and all fees and charges.

Is death considered voluntary termination?

Termination following an employer-initiated lockout: Involuntary. Termination with a severance package: Involuntary where the employer has indicated that there will be a specified workforce reduction following the end of the severance package window. Death: Voluntary — at least according the IRS.

What does voluntary termination of car finance mean?

Voluntary Termination of car finance Voluntary Termination applies to both Personal Contract Purchase (PCP)and Hire Purchase (HP)contracts.

Is it legal to end a car finance agreement early?

Your right to bring a hire purchase (HP) or personal contract purchase (PCP) agreement to an early end is laid out in section 99 of the Consumer Credit Act 1974. This law aims to protect you if you take out a finance agreement that you later find unaffordable. Your rights should also be set out in your contract documentation.

What does it mean to end a finance agreement?

When you are buying a car on finance you have the right to hand the car back and end the agreement. Depending on how much you have paid, you may not need to pay any more. This is known as Voluntary Termination (VT). It applies if you have an HP or PCP finance agreement.

When to do a voluntary termination with Audi finance?

At the end of the term, you have the option to give the car back and owe nothing, irrespective of its then market price. So, if the negative equity is significant, you would be best advised, as above, to wait for term completion. …and I’ve been recommended to do a voluntary termination and hand the car back and get a new deal.

Is the voluntary termination of car finance legal in the UK?

The voluntary termination (VT) of your car finance agreement is a legal right that you have in the UK, so if you can’t afford your payments, this option is available to you.

Why are there termination clauses in car finance agreements?

Voluntary termination clauses in car finance agreements are there to protect consumers. But there’s no doubt that some borrowers will exploit the clause to allow early cancellation of a PCP or HP if the numbers are favourable. Although voluntary termination provides a safety net for consumers, it generally loses the finance company money.

Can you cancel a car finance agreement early in the UK?

Under UK law, you have the right to cancel some types of car finance agreements early. This is called voluntary termination. Section 99 of the Consumer Credit Act says that in some circumstances you can voluntarily terminate a regulated HP or PCP agreement. This covers both new and used cars.