Ending the Agreement

  • Deposit
  • Fees
  • Regular payments
  • Option to purchase fee

Early Settlement

A HP agreement can be settled at any time by the customer by paying the balance of finance outstanding and 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 is 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 a HP agreement, once all the contracted payments have been made, the customer will usually pay the Option to Purchase fee and take legal title to the goods. However, this is a true option. The customer could return the vehicle to the finance company if the customer so desired  (even though the vehicle has effectively been paid for). Once the customer has taken legal title they are entitled to sell the vehicle if they so wish.