Ending your finance agreement early
There are three different ways to end your finance agreement early. Find out more about Right of Withdrawal, Voluntary Termination and Early Settlement.
Early settlement - paying off your finance agreement early
You can settle your agreement at any time during the term. This could reduce the amount of interest due – in which case, you’ll get a rebate based on a statutory formula set out in the Consumer Credit Act 1974 (CCA). You can request a settlement quotation at any time during the term of your agreement at no cost.
If you want to make lump-sum payments, but not settle in full, we can quote you for this too.
If you have a Personal Contract Purchase (PCP) agreement , you have three options: reduce the final amount due at the end of the agreement, reduce the term of the agreement, or reduce your monthly payments.
If you have a Hire Purchase (HP) agreement or a Restricted Use Loan (RUL) agreement and you make a lump sum payment, you have two options: reduce the term of the agreement or reduce your monthly payments.
There is no penalty for settling early. Please call our Customer Services team on 0345 128 8908 and we will be happy to give you a settlement quotation. Your Honda retailer can also request a settlement quotation for you. The figure will be valid for 28 days – if you don’t settle your finance within this time, you’ll need to request an updated figure.
How is the early settlement quotation calculated?
We’ll take into account the amount outstanding, the interest rate, the option to purchase fee if applicable and the length of time left on the agreement. Any rebate of interest will be based on a statutory formula set out in the Consumer Credit Act 1974 (CCA).
What is the difference between my total outstanding balance and my settlement amount?
The total outstanding balance includes all capital, interest and fees that you will pay if you continue to pay your agreement monthly as scheduled until its end date. An early settlement amount includes a rebate of interest which you may be entitled to for paying off your agreement early.
Returning your vehicle (Voluntary Termination or handback)
If you’re thinking about ending your finance agreement early or returning your vehicle at the end of your agreement, we’re here to help guide you through the process.
The steps below explain what usually happens and what you need to know.
Step 1 - Contact us to discuss your options
If you’re considering:
- Voluntary Termination – ending your agreement early
You can exercise their right to Voluntary Termination at any point during the agreement. If you choose to do so, you will be required to pay any amount needed to reach half of the total amount payable under the agreement. If this amount cannot be paid in full, the outstanding balance may be recorded as a default on your credit profile.
- Vehicle Handback – returning your vehicle at the end of a PCP agreement
If you reach the end of your PCP agreement and choose to return the vehicle, you will not need to pay the final payment (Guaranteed Future Value). However, you may still be liable for additional charges as outlined within Understanding Any Costs.
You are welcome to contact us to further discuss your options on 0345 128 8909 or by email at hfe.disposal@honda-eu.com
Step 2 - Understanding any costs
Depending on your agreement, you may need to consider:
- Amount to reach half of the total amount payable under Voluntary Termination
- Any existing arrears that remain unpaid
- Excess mileage charges (if your agreement includes a mileage allowance)
- Charges for damage beyond fair wear and tear
- Transportation costs where collection is required
- The vehicle should be returned in a safe, legal and reliable mechanical condition, with a valid MOT (where applicable)
Step 3 - Confirming your intention to return the vehicle
Once we've received your written confirmation that you wish to return the vehicle:
- We’ll record your intention to return the vehicle
- We’ll provide written confirmation and any relevant information to support the process
Step 4 - Returning the vehicle
You’ll have two options:
- Drop the vehicle off at one of our approved locations
- Arrange collection, which may involve a fee
Step 5 - Vehicle inspection and completion
Once the vehicle is returned:
- It will be inspected for condition and mileage
- We will notify you of any damage charges
Step 6 - Final liability
Upon vehicle sale:
- We will confirm in writing any final liability
Your right to withdraw from your finance agreement
If you’ve recently taken out a finance agreement with Honda Financial Services you have the right to withdraw from the agreement within a set period.
This section explains how the Right of Withdrawal works and what you need to do.
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What is the Right of Withdrawal?
The Right of Withdrawal allows you to cancel your finance agreement within 14 days of:
- the date you sign the agreement, or
- the date you receive a copy of your agreement (whichever is later)
You do not need to give a reason for withdrawing.
Please note: withdrawing from the finance does not cancel the vehicle purchase, it only cancels the finance agreement.
What happens if you withdraw?
If you choose to withdraw:
- Your finance agreement will be cancelled
- You will need to repay the amount borrowed, along with any interest accrued from the date the agreement started to the date you repay the balance
- No early settlement or cancellation fees apply under the Right of Withdrawal
- We will confirm the amount you need to repay and how to make payment
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How to exercise your Right of Withdrawal
To withdraw from your agreement, you must:
- Contact us within 14 days to confirm your decision
- Repay the outstanding balance within 30 days of telling us you wish to withdraw
- Once payment has been received and processed, your agreement will be brought to an end
You are welcome to contact us to further discuss on 0345 128 8908 or by email at hfe.customerservice@honda-eu.com