What is a Settlement Figure?

A settlement figure is the total you need to pay if you want to clear your car finance before the agreed end date. It covers your remaining loan balance, interest up to the settlement date, and sometimes extra charges or fees. Settlement figures are available for most finance types, including Hire Purchase (HP) and Personal Contract Purchase (PCP).

How does it work?

Instead of continuing monthly repayments, you make one payment to settle the finance early. For HP, this means full ownership of the car. For PCP, you may also need to pay the balloon payment if you want to keep the vehicle. Settling can give you more flexibility or help if you’re changing cars sooner.

What’s included in a settlement figure?

It usually includes:

• The outstanding loan balance

• Any interest accrued up to the settlement date

• Fees such as early repayment penalties or excess mileage charges

You can request this figure from your lender or dealership, often through an online portal.

How is it calculated?

Your lender works it out based on what you still owe, the time left on your agreement, interest rates, and any fees set out in your contract.

Can you settle early?

Yes, most agreements allow early settlement, but there may be fees. Always check your contract and ask for a settlement figure to see the exact cost.

Is it cheaper?

Paying off early often saves you money by reducing future interest. But any fees or penalties could affect how much you save.

What happens when you request one?

Your lender will give you a breakdown showing what’s been paid, what’s left, and any added fees. They’ll usually provide this in writing as a settlement agreement.

Can dealers settle finance for you?

Sometimes. Dealers may offer to settle your current finance if you’re taking a new deal with them, but check carefully—it could mean higher monthly costs on your new agreement.

Ownership after settlement

Once the settlement figure is paid, your agreement ends. With HP, the car becomes yours outright. With PCP, you may still need to pay the final balloon to take ownership.