revocation, termination, revocation joker – consumers have several options
Can I simply cancel a car loan?
In germany a contract, in order to remain valid, certain statutory requirements correspond. Which these are in detail, is above all in the German Civil Code (BGB) regulated. Does a contract bspw. About a car financing these conditions do not apply, it may be easy to revoke. This has been particularly important for consumers since the diesel exhaust scandal an important role.
But even away from diesel vehicles, car buyers sometimes want withdraw from a contract prematurely. The reasons for this can be quite different look. In this guide, we will discuss whether you should take out a car loan cancel or. revocation They may, for example, have found a more favorable offer or simply no longer need the vehicle. In addition follow brings the early termination with itself? Finally we go to the judgments of the german federal court of justice (bundesgerichtshof, BGH) and the european court of justice (eugh) to consumer/car loans a.
FAQ: cancel car loan
Yes, you always have the option of terminating the loan prematurely, for example for a vehicle. However, in certain circumstances, an early repayment penalty may be due for the interest not paid. Learn more about compensation here.
In the case of a contract that complies with the legal requirements, revocation is usually possible within 14 days of conclusion. Whether your credit agreement meets these requirements is best discussed with a lawyer.
The eugh ruling could have the effect that numerous credit agreements can be revoked even after the statutory revocation period has expired. Find out more here.
The difference between revoking and terminating a loan agreement
Anyone who wants to terminate their car loan should first of all know that a distinction is made here between two types:
- Dem revocation (usually possible within 14 days after conclusion of the contract)
- The notice of termination within the notice period agreed in the contract
If you conclude a loan, you will find the following in the contract documents mostly a section that deals with the revocation deals. The period for a revocation usually amounts to 14 days after conclusion of contract or. After you have been informed about the revocation, you must. In such a case, it is car back and also receive already paid services usually by the bank in question refund.
In the event of termination, compensation is usually due
Terminating a car loan prematurely is usually accompanied by an early repayment penalty.
Is the deadline to cancel the contract? revocation, expired, you can still cancel a car loan cancel. It is always worth taking a look at your contractual documents. Here, for example, the cancellation period should be specified precisely – it usually amounts to four weeks.
When cancelling a car loan, however, you should bear in mind a few points. First you have to repay the entire remaining amount. In addition, the lender may charge a compensation for early repayment demand. This finally escapes some interest, if you terminate the contractual relationship prematurely. According to article 16 of EU Directive 2008/48/EC, the early repayment penalty may ..
- With a remaining contractual term of less than a year at most 0.5 percent the remaining debt and
- With a remaining contract term of more than one year at most 1 percent the remaining debt
conduct. If you want to cancel your car loan, however, you should be aware of the advice from a lawyer obtain.
Canceling a car loan early: different opinions of the BGH and eugh
As you can see from the distinction between a revocation and the termination of a car loan, it is consumer advantage of having a contract to revoke, if this is possible, as here mostly no compensation incurred for the loan.
The eugh (az.C-66/19) has ruled on 26. March 2020 ruled that borrowers from the lenders clear about the cancellation periods as well as their beginning must be clarified. In numerous contracts, only
referred to a national provision [referred to], which itself refers to further legal provisions of the member state concerned.
Judgement az.: C-66/19
The eugh has ruled these "cascade references" for unlawful explains. However, the BGH ruled on 31. March 2020 contradicted the eugh (az.: XI ZR 198/19). Were the revocation instructions (incl. The cascade references) taken over from the legislator’s model instructions, they are permissible.
The two courts also disagree on another question:
This was the ruling of the BGH on 05.11.2019 (az. XI ZR 650/18 and XI ZR 11/19) that not all errors in a revocation instruction lead to the fact that they terminate their car loan prematurely by means of the revocation joker and/or. You can revoke after the statutory revocation period. Despite errors, car loan revocation notices can be admissible.
At 09.09.2021 the eugh now contradicted the opinion of the BGH. From the eugh ruling (az.The Court of Justice of the European Communities (Cases C-33/20, C-155/20 and C-187/20) has ruled that consumers may revoke car loan agreements even years after they have been concluded if they contain insufficient mandatory information. You can find out more about this here in our guide to revoking car loans.
So if you intend to cancel your car loan to be cancelled/revoked, it is best to discuss the procedure with a attorney discuss, as the BGH and eugh disagree on these issues.