- Regular payments
- Option to purchase fee
An HP agreement can be settled at any time by the customer by paying the balance of finance outstanding and the Option to Purchase fee to the lender.
The lender may allow the customer a rebate of the interest if the outstanding finance balance is settled before the agreement end date. If the HP agreement is a regulated credit agreement, the amount of the rebate will be calculated according to provisions set out in regulations made under the Consumer Credit Act 1974 (but the lender may be entitled to compensation in certain circumstances). If the agreement is regulated, the customer may also have the right to voluntarily terminate the agreement before the final payment falls due and hand it back under the Consumer Credit Act 1974.
End of Term
At the end of an HP agreement, once all the contracted payments have been made, the customer will normally pay an Option to Purchase fee which enables them to take legal title to the vehicle. However, the customer may decide not to pay an Option to Purchase fee and return the vehicle to the finance company if they wish even though the vehicle has effectively been paid for by this time. Once the customer has taken legal title they are entitled to sell the vehicle.