Can I hand my car back before the end of the lease?
This is covered by the industry “HALVES & THIRDS” rule:
Where a customer is signing a regulated Hire Purchase agreement, whether fully amortised or with a final “Balloon” payment you have two specific rights, commonly called “Halves & Thirds”. This means that you:-
1. Have the right to “Voluntary Terminate” (VT) the vehicle and return it to the creditor (Fair Wear & Tear, excess mileage & collection rules apply) and pay no more provided that you have paid at least one half of the total amount payable under the agreement (on PCP this included the final payment amount). This amount will be stated on your customer’s schedule.
2. Once you have paid at least one third of the total amount payable under the agreement, the creditor cannot repossess the vehicle without a court order. However, under Scottish law, in Scotland a court order is always required for repossession.
If you are in any doubt, please ask us, we are here to help.
