Car finance cooling off period: 14 days to withdraw, and what the car costs after
Section 66A of the Consumer Credit Act 1974 gives you 14 days to withdraw from a regulated credit agreement. It is a right to unwind the borrowing, not a right to keep the car and stop paying, and the distinction is where most of the confusion in this subject sits.
- to withdraw from a regulated credit agreement, Consumer Credit Act 1974 s.66A
- 14 days
- gives the right to complete payments ahead of time at any point
- s.94
- of the total price is the voluntary termination ceiling, Consumer Credit Act 1974 s.100
- 50%
Figures on this page are the statutory rights that attach to a regulated motor finance agreement in Great Britain, quoted from the legislation itself and linked in the sources below. KnownVehicle is not authorised for credit broking and introduces no lender: nothing here is a quote, an application or a recommendation.
- 2 vendor product pages verifiedevery figure matched verbatim to the vendor's page
- Quoted and dated, never estimatedlast verification pass 2026-08-26
- 2 check types coveredeach with measured search demand behind it
Cancelling car finance within 14 days: the right, and what follows
- The clock starts when the agreement is executed or confirmed. The 14 day period runs from the day after the agreement is made, or from the day you receive a copy or notice of the credit limit if that is later. You do not have to give a reason and you do not have to use a particular form of words, though notice in writing is what you will want to be able to prove. The right applies to regulated credit agreements, which is most consumer motor finance, and not to hire agreements such as a contract hire lease.
- Withdrawing unwinds the credit, so the car has to be paid for. Once you withdraw you must repay the credit, with interest for the days you had it, generally within 30 days. If the lender paid the dealer for a car you have already collected, unwinding the credit leaves you owing that money. In practice people withdraw and return the car by agreement with the dealer, but the dealer is not obliged to take it back simply because you cancelled the finance, and those are two separate contracts.
- After 14 days the exits are settlement, termination and sale. Early settlement under s.94 lets you pay the agreement off at any time and is the clean exit if you can fund it. Voluntary termination under s.99 and s.100 lets you hand the car back once you have paid half the total amount payable, and caps what you owe at that half. Selling the car and settling from the proceeds is the third route, and it only works if the sale covers the settlement figure.
- Buying at a distance or off premises can add a separate right. If the sale itself was concluded online, by telephone or away from the trader's premises, consumer contract cancellation rules may give you a right against the dealer in respect of the car as well as the credit. That is a different right, with different time limits and different exclusions, and it does not arise simply because you signed the finance electronically in the showroom.
The 14 day cooling off period car finance agreements carry, and where it starts
The right is statutory on a regulated credit agreement: the borrower may withdraw without giving any reason by giving notice before the end of the period of 14 days beginning with the day after the relevant day. It is a right to withdraw from the CREDIT, which is why exercising it leaves you owing the money for a car you have already collected.
That is the part people miss. Withdrawing means repaying the capital, normally within thirty days, plus interest for the days you had it, and then arranging the car separately with the dealer, who is under no statutory obligation to take it back on a face-to-face sale. Use the right early, before the car is collected, and it costs almost nothing.
Common questions
- How long is the cooling off period on car finance?
- 14 days from the day after the agreement is made, or from when you receive your copy if that is later, under Consumer Credit Act 1974 s.66A.
- Does cancelling mean returning a car on finance within 14 days?
- Withdrawal ends the credit agreement, not the sale of the car. You must repay the credit with interest for the days you held it, and returning the car is a matter for the dealer.
- Can I cancel a PCP within 14 days?
- Yes, a PCP is a regulated credit agreement and the s.66A withdrawal right applies to it.
- Can you cancel car finance after the 14 days have passed?
- The remaining exits are early settlement under s.94, voluntary termination under s.99 once half the total amount payable has been paid, or selling the car and settling from the proceeds.
- Does this apply to a lease?
- No. A contract hire lease is a hire agreement rather than a credit agreement, so the s.66A withdrawal right does not attach to it.
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Sources
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The median advertised price of a single full car check in the GB car check market was £14.99 in August 2026, across 2 verified vendor product pages recorded in KnownVehicle Car Check Price Index.
Cite as: "KnownVehicle Car Check Price Index", updated 2026-08-26, https://knownvehicle.com/finance/cancelling-car-finance/.