Can I cancel a car financing agreement?

Canceling a car loan early: is it possible?

From bussgeldkatalog.org, last updated on: March 23, 2021

Withdrawal, termination, withdrawal joker - consumers have several options

In Germany a must contractin order to retain validity, certain statutory conditions correspond. What these are in detail is above all in the Civil Code (BGB) regulated. If a contract fulfills, for example, a Car financingnot these conditions, he may be easy to withdraw. This has been playing for consumers especially since Diesel exhaust scandal an important role.

But even apart from diesel vehicles, car buyers sometimes want withdraw prematurely from a contract. The reasons for this can be quite differently look. In this guide we go into whether you have a car loancancel or. withdraw because you have found a cheaper offer, for example, or you simply no longer need the vehicle. Also: Which consequences brings the Early termination with yourself? In conclusion, let's go to that new judgment of the European Court of Justice (ECJ) to consumer credit.

FAQ: Canceling a car loan

Can you cancel a car loan early?

Yes, you always have the option to prematurely terminate the loan for a vehicle, for example. However, a prepayment penalty may apply for the lack of interest. You can find out more about compensation here.

How long is a revocation possible?

In the case of a contract that meets the legal requirements, a revocation is usually possible within 14 days of conclusion. It is best to discuss with a lawyer whether your loan agreement meets these requirements.

What changes does the new judgment of the ECJ change?

The new ruling of the ECJ could mean that numerous loan agreements become invalid and can therefore be revoked. You'll find more about it here.

The difference between a revocation and the termination of a loan agreement

If you want to end your car loan, you should first know that a distinction is made between two types:

  • the revocation (usually possible within 14 days after the conclusion of the contract)
  • the termination within the notice period agreed in the contract

Complete a loan is located in the Contract documents mostly a section that deals with the revocation deals. The deadline for a revocation is usually 14 days after the conclusion of the contract or after you have been instructed about the revocation. In such a case, give that Car back and also receive already paid Services usually from the respective bank refunded.

In the event of termination, compensation is usually due

Is the deadline to complete the contract withdrawHaving expired, you can still get a car loan cancel. It is always worth taking a look at yours Contract documents. Here, for example, the notice period should be specified precisely - it usually amounts to four weeks.

However, there are a few points to keep in mind when canceling a car loan. First of all, you need the Pay back the entire remaining amount. Also, the lender can use a Prepayment penalty desire. Eventually some escape this interestif you terminate the contractual relationship prematurely. According to Article 16 of EU Directive 2008/48 / EC ...

  • with a remaining contract period of less than a year at most 0.5 percent the Remaining debt and
  • with a remaining contract period of more than a year at most 1 percent the Remaining debt

be. If you want to cancel your car loan, you should, however, under certain circumstances Advice from a lawyer catch up.

Because a new one judgment the European Court of Justice now allows a contractual relationship under certain conditions for a long time after expiration the actual deadline withdraw. More on this in the next section.

The ECJ has issued a new withdrawal joker

As you can tell by the distinction between withdrawing and canceling a car loan, it is for consumer beneficial to one To withdraw from the contract, if this is possible, as here mostly no compensation for the loan.

The ECJ (Ref .: C-66/19) ruled on March 26, 2020 that borrowers from lenders clear about the withdrawal period as well as their beginning must be clarified. So far, only

to a national regulation [referenced] which itself refers to further legal provisions of the member state concerned.

Urtei Ref .: C-66/19

The ECJ now has these “cascade references” for illegal explains what a large number of Loan agreements invalid could be. In fact, a new one is created Withdrawal joker.

So do you plan on yours Cancel car loanSo it's best to use a Lawyer discuss as you may be of the new Judgment benefit and thus the contract withdraw can.

Photo credits: fotolia.com/// ilkercelik, istockphoto.com/style-photographs

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