Black Horse Voluntary Termination Agreement

Black horse voluntary termination agreement: Everything you need to know

If you`re considering ending your car finance agreement early, then it`s worth understanding the black horse voluntary termination agreement. This is a legal right that allows you to end a regulated car finance agreement, such as a personal contract purchase (PCP) or hire purchase (HP) agreement, provided you meet specific conditions.

In this article, we`ll explore what the black horse voluntary termination agreement is, how it works, and what you need to consider before using it.

What is the black horse voluntary termination agreement?

The black horse voluntary termination agreement is a clause in your PCP or HP agreement that allows you to end the contract early. Essentially, it gives you the right to hand back your car without any additional charges, provided certain conditions are met.

How does the black horse voluntary termination agreement work?

In order to use the black horse voluntary termination agreement, you must have paid off at least half of the total amount payable under the agreement. This includes any interest and fees, as well as the initial deposit you paid.

Once you`ve paid off at least half the total amount payable, you can end the agreement and return the car to the finance company. You won`t be liable for any further payments, as long as the car is in good condition and you haven`t exceeded the agreed mileage limit.

However, if you`ve exceeded the mileage limit or there is damage to the car, you may be charged additional fees. These will be outlined in your agreement, so it`s worth checking the details before deciding to terminate the contract.

It`s important to note that if you`ve paid off more than half of the total amount payable, you may be entitled to a refund. This will depend on the specific terms of your agreement, so again, it`s worth checking the details before taking any action.

What should I consider before using the black horse voluntary termination agreement?

Before deciding to terminate your car finance agreement using the black horse voluntary termination agreement, there are a few things you should consider:

1. Your credit rating

Ending a finance agreement early could have an impact on your credit rating. If you`re planning on applying for credit in the future, it`s worth bearing this in mind.

2. Your future car needs

If you terminate your agreement early, you`ll need to find another car. Make sure you have a plan in place for your next car, and factor in the cost of depreciation and any future finance agreements.

3. Other options

If you`re struggling to keep up with your finance payments, there may be other options available to you. For example, you could speak to your finance company about a payment plan or a debt management solution.

In summary, the black horse voluntary termination agreement is a useful legal right that can help you end a car finance agreement early. However, it`s important to understand the conditions and any potential fees before making a decision, and to consider alternative options if you`re struggling to keep up with payments.