If you have paid more than 50% of goods bought on HP you have the right to terminate the agreement & walk away - this assumes the goods are in good condition (fair wear & tear) - without paying anything further.

I think the OP should google Early Termination of HP under Section 99 Consumer Credit Act 1974

Voluntary termination of a PCP or HP is the legal right of a borrower (you) to cancel your finance agreement early and walk away in certain circumstances. Car finance companies don’t like it, plus it is usually explained poorly (or not at all) by dealers. Luckily for you,

Edited by Falkirk Bairn on 07/09/2018 at 17:37

You can return car under Section 99 & there is no black mark on the credit score - as you are merely exercising your rights under the CCA 1974 & your rights cannot be taken away by the Finance Co!

This assumes the car has been properly looked after - no bashes, bald tyres, holes in seats, has been serviced on time, has a current MoT etc etc.

You have to state you are returning the car under Section 99 - do not sign any return paperwork sent by Finance Company as they will be looking for anyway you can be hit for anything that they deem will earn them money - you just tell them, drop it off/ they pick it up & walk away.

Of course it goes without mentioning that if you return a car early to get another car, the dealer will likely settle the outstanding amount to entice you into their latest new shiny car.......

especially if the new car is more expensive

That's what happened to me. I part-exchanged a petrol Focus for a diesel one due to a new job and the Ford dealer settled the balance for me. It would have been about £5000.

Could be a different story if you went to a different manufacturer.

Edited by Bicycle_Repair_Man on 08/09/2018 at 16:06