Car finance settlement figure: what it includes, and when paying it early saves money
A settlement figure is what it costs to end the agreement today, and it is not the sum of the payments you have left. Future interest is rebated, and a limited charge may be added.
- agreements cover almost every financed car in the UK
- 3
- to withdraw from a regulated credit agreement, Consumer Credit Act 1974 s.66A
- 14 days
- of the total price is the voluntary termination ceiling, Consumer Credit Act 1974 s.100
- 50%
Figures in this panel are the statutory rights that attach to a regulated motor finance agreement, quoted from the Consumer Credit Act 1974 itself and linked in the sources below. KnownVehicle is not authorised for credit broking and introduces no lender: nothing on these pages is a quote, an application or a recommendation.
- 2 vendor product pages verifiedevery figure matched verbatim to the vendor's page
- Quoted and dated, never estimatedlast verification pass 2026-08-26
- 2 check types coveredeach with measured search demand behind it
What is a settlement figure made of?
- The right to settle early is statutory. Section 94 of the Consumer Credit Act 1974 entitles the debtor under a regulated agreement to discharge the debt at any time by giving notice and paying what is owed, less the rebate the Act allows. The lender cannot refuse, and it has to tell you the amount.
- Future interest comes off, and a charge may go on. Because you are ending the agreement early, interest that would have accrued over the remaining term is rebated under the early settlement regulations. Against that, the lender may add a charge of up to a limited amount of interest, which is why the figure is usually a little more than the raw outstanding capital.
- On a PCP the balloon is in the figure. Settling a PCP early means paying the deferred final payment as well, because you are buying the car rather than handing it back. That is why a mid-term PCP settlement figure often surprises people: it includes the part of the car that was never in the monthly payment.
- Refinancing the balloon is a separate decision. At the end of a PCP you can pay the balloon, hand the car back, or borrow to pay the balloon and keep the car. The third is worth doing only where the car is worth more than the balloon, because you are then borrowing against equity rather than into a shortfall.
Common questions
- How do I get a settlement figure?
- Ask the lender, in writing or through its portal. A regulated lender has to provide a statement showing the amount required to settle, and the figure is normally valid for a stated number of days.
- Is there a penalty for paying off car finance early?
- Not a penalty in the ordinary sense. The early settlement regulations permit the lender to keep a limited amount of interest, which is disclosed inside the settlement figure rather than charged separately.
- Can I change my car on PCP early?
- Yes, if the car is worth at least the settlement figure. Dealers often describe this as being in positive equity, and the equity becomes the deposit on the next agreement. Below that figure you are paying to leave.
- What is the GMFV?
- The guaranteed minimum future value, the amount the lender guarantees the car will be worth at the end of a PCP. It sets the optional final payment, and it is what makes handing the car back a real option rather than a risk you carry.
- Can you refinance a balloon payment to keep the car?
- Yes. At the end of a PCP you can pay the balloon, hand the car back, or borrow to pay the balloon and keep the car. The third is worth doing only where the car is worth more than the balloon, because you are then borrowing against equity rather than into a shortfall.
- Can you pay off PCP early?
- Yes. Section 94 of the Consumer Credit Act 1974 lets you settle a regulated agreement at any time, but settling a PCP early means paying the deferred final payment as well, because you are buying the car rather than handing it back. That is why a mid-term PCP settlement figure often surprises people.
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Sources
Cite or embed this figure
The median advertised price of a single full car check in the GB car check market was £14.99 in August 2026, across 2 verified vendor product pages recorded in KnownVehicle Car Check Price Index.
Cite as: "KnownVehicle Car Check Price Index", updated 2026-08-26, https://knownvehicle.com/finance/car-finance-settlement-figure/.