Defined
What Is Settlement Figure?
A settlement figure is the amount you need to pay today to clear your car finance in full and end the agreement. It's your remaining balance minus a statutory interest rebate.
The settlement figure is the single number that tells you what it costs to walk away from your finance early. It's lower than simply adding up your remaining payments, because you get a rebate on interest you haven't yet been charged.
How a settlement figure works
Your settlement figure is the outstanding balance minus a statutory interest rebate under the Consumer Credit (Early Settlement) Regulations 2004, plus up to about one month's interest the lender may add.
You can ask your lender for a settlement figure at any time, and it's valid for a set period. You need it to work out your equity before a part-exchange, or to compare paying off early against carrying on.
A worked example
If your remaining payments add up to £10,200 but the interest rebate is £700, your settlement figure is around £9,500.
Worked example
Frequently asked
What is a settlement figure on car finance?
Why is my settlement figure lower than my remaining payments?
How do I get my settlement figure?
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