Early Termination

Early Termination

This is when you cancel a finance agreement before it runs for the full term you have signed up for. Contract Hire agreements can incur punitive charges for early cancellation as the depreciation is worked out over the term of the agreement, and most cars drop like a stone in the first year of their life. So the earlier you want out of the agreement, then generally the more its going to hurt. Hire purchase, personal contract purchase and lease purchase are more flexible and generally have a softer landing if you want to settle the agreement early.