Your Finance Settlement Figure Explained — What It Is and How to Get One
💡 Key Takeaway
What is a car finance settlement figure? How is it calculated and when should you request one? Everything UK buyers need to know in 2026.
What Is a Finance Settlement Figure? 💡
A settlement figure is the exact amount you need to pay your lender to clear your car finance agreement in full on a specific date.
It's not simply the amount remaining on your loan — it's calculated using a specific formula that includes early repayment adjustments. Understanding it is essential before you sell, part-exchange, or exit a finance deal.
How Is a Settlement Figure Calculated?
Your settlement figure is typically made up of:
- Outstanding capital balance — the amount of the original loan not yet repaid
- Accrued interest — interest charged up to the settlement date
- Early repayment charge — usually 1–2 months' interest (required under the Consumer Credit Act)
- Minus a statutory rebate — a refund of future interest you haven't yet been charged
The net result is usually slightly more than your remaining balance but often less than the full remaining payments.
When Should You Request a Settlement Figure?
You should request one whenever you're considering:
- Selling your car before the end of the agreement
- Part-exchanging for a new vehicle
- Paying off the finance early with savings or a personal loan
- Checking whether voluntary termination is more cost-effective
Settlement figures are typically valid for 30 days — get one in writing from your lender. 📄
How to Request Your Settlement Figure
Contact your finance company directly — by phone, online portal, or letter. Under the Consumer Credit Act, they must provide this within a reasonable time.
You're entitled to one free settlement figure per year; additional requests may carry a small admin charge.
Settlement Figure vs Outstanding Balance — What's the Difference?
Your outstanding balance is simply what's left on your loan schedule. The settlement figure is what you'd pay today to close the account — factoring in early repayment mechanics.
They're often close, but not identical. Always use the official settlement figure for any negotiations. ✅
What If the Settlement Is More Than the Car Is Worth?
This is negative equity — common on longer-term deals or rapidly-depreciating vehicles. If you find yourself in this position, speak to a broker before making any decisions.
At We Finance Your Asset, based in Reading, Berkshire, we help buyers across the UK navigate settlements, negative equity, and refinancing decisions. 👉 Get in touch at wefinanceyourasset.co.uk.