VW Financial Services Voluntary Termination (Audi, SEAT, Škoda, CUPRA)

If you financed a Volkswagen, Audi, SEAT, Škoda or CUPRA through the dealer, your agreement is very likely with Volkswagen Financial Services (VWFS). This page covers how VWFS handles Voluntary Termination, based on its own published guidance.

For how VT works in general (the 50% rule, what counts towards it, and excess mileage), see our complete Voluntary Termination guide.

Which cars does this cover?

VWFS provides finance for these brands in the UK:

• Volkswagen and Volkswagen Commercial Vehicles
• Audi
• SEAT and CUPRA
• Škoda
• Porsche, Bentley and Lamborghini

Your agreement paperwork and monthly statements show exactly who your lender is.

Can you VT with VWFS?

Yes, on a PCP, Hire Purchase or Lease Purchase agreement. VWFS says you can end these "at any time" through voluntary termination, and that "you will need to pay a percentage of the total amount payable". Under the Consumer Credit Act, that percentage is 50% for a regulated agreement.

VT doesn't apply to contract hire (a lease where you never own the car). Contract hire has its own early termination terms.

How to start a VT with VWFS

1. Check your figures. Log in to your VWFS online account, where you can view your agreement, documents and end-of-contract options. Or call customer services, which also provides settlement and early termination quotes.
2. Put it in writing. Tell VWFS you're exercising your right to Voluntary Termination under Section 99 of the Consumer Credit Act 1974. Writing protects you from it being treated as anything else. Our VT guide includes a letter template.
3. Arrange the handback. Agree with VWFS how and when the car will be collected or returned. Have it in a condition that's fair for its age and mileage, and photograph it before it goes.
4. Pay any balance. If you're short of the 50% point, or have arrears, you'll be asked to pay the difference (see below).

If you haven't paid enough yet

You can still VT before you reach 50%. VWFS says that if you terminate "before the amount needed has been paid you will be asked to pay the balance", and that it can work with you to agree a payment plan.

Be aware of how that shows on your credit file. VWFS says the balance "will continue to register outstanding on your credit file until cleared in full", and that "these late payments will remain on your credit file for 6 years and may impact future applications for credit."

So if you can, pay the shortfall straight away, or agree a plan before the car goes back. Our Voluntary Termination calculator guide shows how to work out the shortfall.

VT is not the same as repossession

VWFS lists repossession separately from VT, and the credit impact is very different. For a PCP, HP or Lease Purchase agreement, VWFS says that if the car is repossessed, "your credit file will show a default and this will remain on your file for up to 6 years".

A completed VT, where the required amount is paid, isn't treated as negative information. The Financial Ombudsman has said so in its decisions (DRN-5586989). If you're struggling with payments, ask VWFS about VT and your other options before it gets to repossession. Our VT guide has more on how VT affects your credit file.

How to contact VWFS

• Online account: view your agreement and end-of-contract options
• Customer services, including settlement and early termination quotes: 0370 010 2022, Monday to Friday 9am to 6pm, Saturday 9am to 1pm
• If you're in financial difficulty: 0800 912 3558, Monday to Friday 9am to 7pm, Saturday 9am to 1pm, or email collections.mailbox@vwfs.co.uk

Contact details can change, so check them against VWFS's website or your latest statement before you get in touch.

FAQs

Is Audi Finance the same as VWFS?

Yes. Audi finance in the UK is provided by Volkswagen Financial Services, along with Volkswagen, SEAT, CUPRA, Škoda and others. The VT process is the same whichever brand your car is.

Can I VT a VWFS contract hire lease?

No. Voluntary Termination applies to PCP, Hire Purchase and Lease Purchase agreements. Contract hire has its own early termination terms set out in your contract.

What if I can't pay the VT shortfall in one go?

VWFS says it can work with you on a payment plan. Until the balance is cleared, it continues to show as outstanding on your credit file.

How EquityGo helps

EquityGo tracks how close you are to the 50% point on your VWFS agreement, so you can see exactly when you could hand the car back owing nothing. Try the free PCP calculator, or track it automatically in the app.

Get EquityGo on Google Play. Free to use, with a free 30-day Pro trial.

Sources

• VWFS: Supporting customers with financial difficulties: VT, payment plans, credit file wording, repossession and contact numbers
• VWFS customer site: brands covered and online account features
• Financial Ombudsman decision DRN-5586989: a completed VT is not negative information
• Consumer Credit Act 1974, Section 99: the right to terminate
• Consumer Credit Act 1974, Section 100: the 50% liability cap