Understand your rights before you sign.

Clear information and time to decide

For regulated agreements, you should receive the relevant pre-contract information and an explanation of key terms. Check repayments, total cost, fees, ownership and what happens if you miss a payment. Ask the lender or broker to explain anything unclear; you are not obliged to proceed with an enquiry.

Withdrawing from credit is not returning the car

Many regulated consumer credit agreements give you a 14-day right to withdraw from the credit agreement. Deadlines and repayment requirements apply: the borrowed amount and accrued interest normally have to be repaid within 30 days of giving notice.

This does not automatically cancel the vehicle purchase or give you a right to return the car. Ask the lender and seller about your particular documents before acting.

Early settlement and voluntary termination

You may be able to settle a regulated agreement early; ask the lender for a settlement figure. This is different from voluntary termination.

For qualifying regulated HP or PCP agreements, statutory voluntary termination can allow you to end the agreement and return the car. You will usually need to have paid, or make up payments to, 50% of the total amount payable. Outstanding arrears and liability for failure to take reasonable care may also apply; ask for a breakdown rather than assuming a payment figure. For PCP, the calculation includes the balloon payment, not just monthly instalments. Check the agreement and get independent guidance before proceeding.

A problem with the car

Cars supplied under HP or PCP must meet applicable consumer-law standards, including satisfactory quality, fitness for purpose and matching their description. What is reasonable depends on factors such as age, price and mileage. Contact the finance provider promptly about a fault; rights and remedies depend on the circumstances. Do not stop payments without advice or agreement.

Complaints and independent help

Raise a complaint with the business responsible first. If you remain unhappy or the relevant response period has passed, you may be able to refer it to the Financial Ombudsman Service free of charge. Eligibility and time limits apply. Special arrangements can apply to motor-finance commission complaints, so check the current official guidance.

FCA regulation is not a guarantee of approval, a recommendation of a product or an automatic promise of compensation. Data-protection concerns can also be raised with the Information Commissioner’s Office.