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Ending a Car Finance Deal

What happens at the end of a car loan agreement?
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What happens at the end of a hire purchase (HP) agreement?

Congratulations! You’ve made your monthly repayments on time, every month, for up to six years, and now the end of your hire purchase (HP) loan is finally in sight. But what happens next?

HP is designed to lead to car ownership. When you reach the end of your HP agreement, assuming you’ve kept up with all your repayments, you’ll become the car’s legal owner. There may also be a small admin fee to pay, known as the Option to Purchase, which is usually between £100 – £300.

Keep in mind that you’ll only become the car’s legal owner once the loan is fully repaid; during your loan term, the car will technically belong to the lender, so you can’t modify it or sell it until your term has ended.

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What happens at the end of a personal contract purchase (PCP) agreement?

What happens at the end of a personal car loan?

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Will I own the car at the end of the agreement?

Can I end my car finance agreement early?