Bankrupt and need to terminate finance

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This topic contains 1 reply, has 2 voices, and was last updated by Stuart Masson Stuart Masson 1 year, 1 month ago.

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  • #92809 Reply

    Smithy

    My business went bust and I have a Ford Transit Connect on finance. Can i terminate the lease and give the van back to the dealer and will i have to pay any penalty? tks

  • #92819 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Smithy. Your options will depend on the type of finance you have. If you have a PCP or HP, you may be able to voluntarily terminate the finance agreement (link to our sister site The Car Expert) and give the van back. This depends on how much you have already paid off, as you need to pay of 50% of the total amount payable to be able to VT the vehicle.

    If you have a lease (contract hire or operating lease), you will have to pay a stiff penalty to end the lease early, which usually makes it a poor option for most.

    I would suggest speaking to your accountant if you have one, or getting one if you don’t, to run through the options available based on your business circumstances and finance agreement.

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