Å KODA Bank

Ending your agreement early

What is a ‘Right of Withdrawal’?

Customers whose finance Agreements are covered by the Consumer Credit Directive have the right of withdraw from their finance Agreement. They have 14 days, starting from the day after they sign their finance Agreement to withdraw from the finance Agreement (but not the vehicle purchase). They simply inform their finance provider, who is entitled to charge a daily rate of interest as detailed on the finance Agreement until such time as the loan advanced has been settled. The customer must do this without undue delay and within 30 days of giving their notice of withdrawal.

Can I change my mind after I have given notice that I want to exercise my Right of Withdrawal?

Once notification has been given the contract cannot be reversed. Legally there is no Agreement in place to reverse. It would be necessary to enter into a new finance Agreement. Please call ŠKODA Finance for more information if required.

For more information on how to contact us, please click here.

If I withdraw from the finance, what happens to the vehicle?

The customer has to pay off the outstanding balance on the finance Agreement within 30 days of notification of withdrawing from the finance together with the daily interest charges. If the finance is not repaid, the creditor will take appropriate legal action to recover their monies and/or the vehicle.

What is the difference between ‘Right of Withdrawal’ and ‘Right of Cancellation’?

Right of Withdrawal

This is only applicable to regulated purchase products (Hire Purchase, Solutions (Personal Contract Plan) and Lease Purchase) up to and including an amount financed of £60,260, governed by the Consumer Credit Directive. This applies to Agreements whether signed at the retailer’s premises or elsewhere.
Please Note: The Right of Withdrawal does not apply to refinance Agreements.

Right of Cancellation

This is only applicable to Agreements with an amount financed over £60,260 signed other than at the retailer’s or lender’s premises and to Agreements where, before entering into the Agreement, the retailer or lender has not had face to face contact with the customer.

Can I cancel the vehicle purchase within the first 14 days?

Under the Consumer Credit Act and Consumer Credit (EU Directive) Regulations 2010 (CCD) a customer has a right to cancel their car purchase only if the Agreement is signed off the dealer’s premises and is for a financed amount greater than £60,260.

For more information on how to contact us, please click here.

I wish to exercise my right to voluntary terminate my agreement - what do I need to do?

Depending on the type of contract that you hold with us will depend if you can voluntary terminate your contract and how much you are required to pay in order to do so. We do suggest that it is best to contact us with regards to this in order that we can supply a voluntary termination figure to you and explain the process in full.

How do I settle my agreement early?

This will depend on a number of factors and what type of finance product you have with us. Please click here for more information on Ending your agreement early, or contact us so we can advise you of the full details.

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This service is currently only available to Private Individual ŠKODA Finance customers