What is a car finance settlement figure?

A settlement figure is the total amount you need to pay to end your car finance early. It clears your agreement in one go, instead of making monthly payments. Without it, you can’t repay the right amount or plan your next move confidently.

The figure includes the remaining loan balance, any interest you've built up, and sometimes extra fees. You’ll need to ask your lender for this if you're thinking about leaving your agreement before the end date.

You can get a settlement figure on most finance types, like Hire Purchase (HP) and Personal Contract Purchase (PCP). With HP, you pay monthly until you own the car. With PCP, you pay lower monthly instalments and choose to buy the car at the end. The settlement figure for PCP also includes the final balloon payment.

Knowing this figure helps you plan your next step. It shows if paying off your car finance early makes sense for you.

How do I request a settlement figure?

To request your settlement figure, contact your lender directly and ask for the total amount needed to end your car finance.

You can usually get this by phone, email (which may take 2–3 working days), or post (which can take up to 7 days). Ask for written confirmation so you have a clear record.

Once you've paid the full amount, your lender will confirm that your agreement is closed. They’ll also send a signed letter to prove your finance has been settled—make sure you keep this in a safe place.

How are settlement figures calculated?

Your settlement figure is calculated by taking your remaining loan balance, subtracting any interest you won’t be charged, and adding any unpaid amounts or fees.

Lenders also include any arrears (missed payments) and may apply early repayment charges if these are part of your agreement. You’ll receive a written breakdown so you know exactly what you owe.

The longer you've been paying off your agreement, the lower your settlement figure will usually be. Always check your finance contract to see how your lender applies these calculations.

Car finance settlement figures on PCP deals

Your settlement figure on a Personal Contract Purchase (PCP) agreement includes everything you need to pay to end your finance early and keep the car.

This total covers your outstanding balance, any early repayment charges, and the final balloon payment (the lump sum due if you want to buy the car at the end of your agreement).

In a PCP deal, your monthly payments only cover part of the car’s value - the difference between its price when new and its estimated value at the end. That’s why the balloon payment is a large part of your settlement figure.

If you're thinking about ending your PCP deal early, getting your settlement figure will help you understand the full cost of keeping the car.

Car finance settlement figures on HP deals

Your settlement figure on a Hire Purchase (HP) agreement is usually easier to calculate because there’s no final balloon payment at the end.

With HP, you pay higher monthly instalments that go directly toward the car’s total cost. This means your loan balance reduces more quickly over time.

As a result, settlement figures on HP deals are often lower (especially in the later stages of your contract) making it easier to clear the finance early if you choose to.

Can you avoid to pay car finance settlement figure?

You might not have to pay the full settlement figure if you're changing cars with the same lender. Some lenders may reduce or waive the amount you owe, depending on your agreement and payment history.

But this isn’t always offered. It's important to check directly with your lender to see if you're eligible for any early settlement options or trade-in deals.

Can I settle my car finance early?

Yes, you have the option to end your car finance agreement before the scheduled date. Paying it off early often reduces the total interest you owe, so it could save you money.

If you plan to sell the car or want to move on from your current deal, ask for the figure first. That way, you’ll know where you stand and avoid surprises.

Alternatives to paying a final settlement figure

If you're thinking about selling your car and settling your finance, there are other options that could work:

Paying a final settlement figure with voluntary termination

You can end your car finance early with Voluntary Termination, a legal right under the Consumer Credit Act 1974. This applies to both Personal Contract Purchase (PCP) and Hire Purchase (HP) agreements.

To use this option, you need to pay at least 50% of the total finance amount. That includes interest, fees, and any extras added to the deal. Once you reach this point, you can return the car and end the agreement.

You won’t keep the car, because you haven’t paid the full amount to own it. But this option works well if you want to walk away without covering the full settlement figure.

Paying a final settlement figure with voluntary surrender

Voluntary Surrender lets you return the car if you can’t keep up with your payments. But you’ll still owe the remaining balance on your finance agreement.

The lender will sell the car, often at auction, to recover some of the money. If the car sells for less than what you owe, you’ll need to pay the difference.

This option usually costs more than Voluntary Termination, where you may not have anything left to pay once the car is returned. Speak to your lender before deciding—they might be able to lower your payments or give you more time to pay.

Find the right broker for a faster offer

The right car finance broker gives you quicker answers and less hassle. Carplus steps in to make everything simpler from the start.

We explain your options clearly and handle the paperwork for you. You won’t need to guess or worry about what comes next. And we stay by your side through every step—from checking your eligibility to securing a finance deal that suits your needs.

If anything feels confusing or you want honest advice, just ask. We’ll listen and point you in the right direction.