Under voluntary termination, what is typically required of the customer?

Study for the Specialist Automotive Finance Test. Use flashcards and multiple-choice questions with detailed explanations to get exam ready!

When a customer voluntarily terminates a finance or lease agreement, the lender reduces its exposure by ending the contract early, but there are costs to recover. The typical arrangement is that the customer must settle a portion of the remaining balance to terminate—the usual expectation is paying at least half of what is owed. This partial payment helps cover the lender’s lost interest, administrative costs, and any early termination fees, while allowing the customer to exit the agreement without continuing payments. The exact amount can vary by contract, but paying about half is a common standard. Paying everything owed or nothing would not align with how voluntary termination is usually handled, and paying double the balance would be unusually punitive.