If you use voluntary termination to end your agreement early, it’ll show up on your credit file. There will be no record of why the agreement was ended. It will make little or no difference to your overall credit score, so is a much better route to take than missing payments, which could have an impact on your credit file, making it difficult to borrow money in the future.
Using voluntary termination frequently to return cars early can look bad on your credit file though. This is because it costs finance companies more to end agreements early.
Because companies lose money when you end agreements early, it means they’re often not very supportive when you want to get voluntary termination. They might want to make the process last as long as possible.
To avoid this, send them a letter explaining you’re applying for voluntary termination. You don’t need to sign documents or fill out termination packs. Citizens Advice provides a template letter for this.
You might also find the finance company wants to give you a penalty based on the mileage of your vehicle. This will be because you’ve done more miles than they expected. Legally, they can't charge you a penalty for this if you’ve taken reasonable care of the car.