Be honest with yourself, at some point you’ve judged somebody by the car that they drive. We know you shouldn’t judge a book by its cover but sometimes it’s far too fun! So, here’s some of the car brands and stereotypes people have about them.*

Whether you have rushed into your agreement or you’ve found a better deal elsewhere, you should be able to cancel your car finance agreement for up to 14 days after you signed on the dotted line. This two-week period is known as a ‘cooling off period’.

Cooling off periods

Under the Consumer Credit Act, you should have 14 days to withdraw from a credit or loan agreement. This is applicable to all finance agreements, regardless of whether you made it in person with the lender, over the phone or on via an internet process.

The 14-day period begins on the day you sign/agree to the contract, when you receive a copy of the agreement or from when you get a notification from your bank records that you have received the loan.
This applies to any Hire Purchase, Personal Loan or Personal Contract Purchase that amounts to below £25,000. Any higher amount will be susceptible to the terms and conditions of the agreement and/or the lender’s decision. In addition, the right to withdraw does not apply to any loan above £60,260.

How to cancel a loan agreement

You will have to provide a notice of your withdrawal either in writing or verbally. Most often you will have to repay any interest that has occurred between taking out the loan and repayment.
The deposit you can pay to secure some car finance deals will often be kept by the car finance lender. It is possible to get this back under special circumstances (i.e. if there has been unlawful conduct or you have signed the contract away from the premises) but it is highly unlikely.

Returning the car

Whilst you can cancel a car finance agreement, you will not always be able to return the car and receive your money back. If you have bought your car on the premises of a car dealership and signed a vehicle form at that location, you must pay for the car in full within 14 days, or within the specified time limit agreed in your contract via an alternative finance option. This is because a vehicle order form is a binding contract.

There are two exceptions to this rule: if you bought off-premises (i.e. via the phone or internet) and you did not sign a vehicle order form from the dealership, or if the car is not as specified in the contract (i.e. it’s different in specification or it is faulty).

We know that sometimes rash decisions can be made and you can jump into a car finance agreement without taking enough consideration. This is one of the main reasons that a ‘cooling period’ was created. However, it’s always important to know exactly what your options are in the event that you need to cancel a finance agreement. We hope this has given you more understanding of those options, for more information visit the GOV website here.

Rates from 9.9% APR. Representative APR 12.4%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating


  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed


  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs


  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit


  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past


  • You may not be traceable on the voters roll
  • Your credit cards are over their limits
  • You have recent CCJs
  • You may have been refused credit elsewhere
  • You may be in a debt management plan

X monthly repayments of

Typical rate

Loan amount

Total payable




*for illustration purposes only

No impact on your credit score*

Representative Example

Borrowing £7,500 at a representative APR of 12.4%, annual interest rate (fixed) 12.36%, 47 monthly payments of £196.44 followed by 1 payment of £206.44 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £1,939.12, total amount payable is £9,439.12.

Evolution Funding Limited, trading as My Car Credit, is a credit broker and not a lender.

Please ensure you can afford the repayments for the duration of the loan before entering into a credit agreement.

*Initial application is a soft search. Should you progress, some lenders may perform a hard search on your credit file.

Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!