What Is A Voluntary Surrender?

At A Glance

• Voluntary surrender means handing your vehicle back to your finance provider.
• The vehicle will be sold, and the money from the sale will go towards what you still owe.
• If the sale price doesn’t cover the full balance, you’ll still need to pay the difference.
• A Default is recorded on your credit file.

When finances feel tight, it can be stressful to keep up with car finance payments. At Marsh Finance, we want to make sure our customers understand their options. One of these options is something called voluntary surrender.

What Does Voluntary Surrender Mean?

Voluntary surrender is when you choose to hand your car back to your finance provider. Instead of waiting for the lender (i.e. Marsh Finance) to take steps to recover the vehicle, you let them know in advance that you cannot continue with the agreement and want to return it.

It’s important to know that voluntary surrender is not the same as voluntary termination (which is another option under certain finance agreements). With voluntary surrender, you are choosing to give the car back, but you may still owe money afterwards.

How Does It Work?

The process is simple and designed to be clear:

1. You let us know – Contact Marsh Finance and confirm you’d like to surrender your vehicle.
2. We explain the details – We’ll confirm what this means for your agreement, any outstanding balance, and what will happen next.
3. Vehicle is collected or delivered – You can either drop the car off at a BCA Auction centre or we will arrange for it to be collected. Please note, you are still liable to pay for the vehicle whilst it is in your possession.
4. We sell the vehicle – The car will be sold at auction or through another channel, aiming to achieve the best price possible.
5. Balance is updated – The sale amount will be used to reduce what you still owe on your finance. If the sale doesn’t cover the full balance, you’ll need to pay the difference.

For example: If you still owe £3,000 and the car sells for £2,000, there will be a £1,000 balance. Added to this balance will be costs associated to collect or sell the vehicle (such as auction fees) – for this example, let’s say this comes to £400. This will mean you will have a final bill of £1,400 for you to pay.

If you are in this situation, please speak to a representative who will be able to give you estimated costs.

What Should You Consider?

Before choosing voluntary surrender, it’s worth thinking through the impact:

• Your credit file – A Default will be registered on your account, which could affect your ability to borrow money in the future.
• Remaining balance – Voluntary surrender does not wipe away the full debt. You’ll still need to pay anything left after the car is sold.
• Costs – If the vehicle is collected, you may be charged collection fees. Dropping the car at an auction centre is usually cheaper.

Why Might Someone Choose This Option?

People often decide on voluntary surrender when they feel they can’t keep up with payments and other solutions aren’t possible, such as a payment holiday for example. It can be a way to stop things from getting worse, take control of the situation, and reduce stress.

While it’s not always an easy decision, it can sometimes be the most practical one. By being open and acting early, you avoid further arrears and give yourself more certainty about what happens next.

How Marsh Finance Can Help

We know this can feel overwhelming. If you’re thinking about surrendering your vehicle, please reach out to us. We’ll explain the process, answer any questions you have, and help you understand what this means for your agreement.

Our goal is to work with you, not against you. We want to make sure you have all the information you need to make the best choice for your situation.