A clear guide to your options if you're struggling with car finance
Car finance can be a practical way to get on the road, but what happens if you hit financial difficulty and can’t keep up with the payments?
Whether you're dealing with rising living costs, reduced income, or unexpected expenses, knowing your rights around car finance and understanding what help is available can make a huge difference.
This guide breaks things down in plain English, offering support, legal context, and practical options to help you feel more in control, no matter your situation.
👉 What happens if you can't afford your car finance payments?
👉 Your rights if you're struggling with car finance
👉 What is voluntary termination of a car finance agreement?
👉 Can I return a car if I've just bought it?
👉 Can I refinance my car if the payments are too high?
👉 Will missing a car finance payment affect my credit score?
👉 What support does Marsh Finance offer when I'm struggling?
👉 Where can I get free debt help if I'm struggling?
👉 Summary
👉 FAQs
First, take a breath. You’re not alone, and lenders like Marsh Finance are here to support you, not punish you.
If you're falling behind or worried about upcoming payments:
Important: Speaking up early can prevent a missed payment from affecting your credit score and make your options more flexible.
When life gets difficult, it's important to know that you're not powerless. If you’re having trouble making your car finance payments, there are clear legal protections in place to support you, and lenders like Marsh Finance are required to follow them.
Here’s what your rights actually mean in real terms:
✅The right to fair treatment under the FCA’s Consumer Duty rules
The Financial Conduct Authority (FCA) sets rules to ensure all finance providers act in your best interest. This includes treating you fairly, clearly explaining your options, and offering support, especially when you’re in financial difficulty.
Under the FCA’s Consumer Duty, lenders must:
At Marsh Finance, we live by these standards, not just because we have to, but because it’s the right thing to do.
📩 The right to complain to the Financial Ombudsman Service (FOS)
If you’ve raised a concern with your lender and don’t feel it’s been handled fairly, you can take your complaint to the Financial Ombudsman Service — an independent, free service that helps resolve disputes.
You can use this service if:
This gives you a path to fairness if something has gone wrong.
🤝 The right to support during financial hardship
If your circumstances change — job loss, illness, caring responsibilities, or anything else — you have the right to ask your lender for help.
They must:
This right is especially important if you are classed as a vulnerable customer, meaning you may be more at risk of harm due to personal circumstances. At Marsh Finance, we train our teams to identify and support vulnerable customers with care, flexibility, and empathy.
🚗 The right to voluntary termination, if conditions are met
This is a powerful consumer right that lets you hand your car back and walk away from your agreement, once you’ve repaid at least 50% of the total finance amount (including interest and fees).
Voluntary termination (VT) can be used with:
It’s designed to give you an exit if the car is no longer affordable, without needing to pay off the full agreement. There are rules around car condition and mileage, but your lender can walk you through the process.
What this means in real life
If you’re feeling anxious or unsure about your car finance situation, you have legal rights designed to protect you, and a lender has responsibilities to help.
At Marsh Finance, we don’t see people as problems. We see people with stories, and we do everything we can to make sure you’re treated fairly, respectfully, and with care.
Voluntary termination (VT) is a legal right under the Consumer Credit Act. It allows you to end your HP or PCP car finance agreement early, without paying off the full loan, if:
✅ You’ve repaid at least 50% of the total amount owed (including fees and interest)
✅ The car is in reasonable condition
✅ You're not already in serious arrears
You return the car, walk away, and owe nothing more (unless there’s damage or excess mileage).
If your car was purchased on finance and has serious faults or doesn’t match the description, the Consumer Rights Act 2015 gives you the right to:
This applies to both HP and PCP agreements. However, be sure to report the issue in writing and keep records.
Yes, refinancing can be an option if:
It’s worth comparing offers or speaking with your lender to see if refinancing can help reduce your car finance costs and ease pressure on your budget.
Want to check out your refinancing budget? Click here to get started.
Remember, depending on your circumstances, refinancing may increase your costs.
Yes, if a payment is missed and not resolved, it may be reported to credit agencies. This can affect your credit score and future borrowing.
But here’s the good news: if you contact your lender early, you may be able to avoid missed payments entirely by setting up a temporary arrangement or payment plan.
At Marsh Finance, we offer tailored support for customers facing financial hardship. That includes:
We’ll talk to you like a person, not a problem, and help you navigate your options with care.
If your money worries go beyond car finance, help is available from trusted organisations:
These services are confidential, free, and there to help you take back control.
Car finance is a commitment, but life doesn’t always go to plan. If you’re struggling, your rights and options are there to protect you.
Whether it’s returning the car, asking for support, or exploring refinancing, the key is to act early and ask for help. You’re not in this alone, and you don’t have to figure it all out by yourself.
Need support with your Marsh Finance agreement?
Our friendly team is here to help. Contact us online, or call us to speak to someone who will listen, understand, and help you move forward.