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What is a Settlement Figure?

Tim Carpenter, Dedicated car finance expert
Written by Tim Carpenter
Edited on

With respect to car finance, a settlement figure simply represents the amount you continue to owe on the sum you have borrowed – plus interest, of course.

It is important to know this figure if for any reason you want to sell or otherwise replace the car you are currently repaying finance on. That is when you need to settle the outstanding amount owed to your finance company and you might do so in one of three ways. Firstly, you can sell the car to a dealer – from whom you might want to buy a replacement vehicle – and use the proceeds to settle the existing finance. Another option would be to arrange a private sale and again use the proceeds to settle the outstanding finance. You have to settle the loan before you can sell the car privately. The third option would be to find the funds to clear the finance yourself and subsequently use these to settle the finance and own the car outright.

You may discover that you have a potential problem of negative equity in the vehicle – in other words, what you still need to repay is more than the current value of the vehicle. In that event, if you are looking to use CarFinance 247 to buy your new car, we do have some lenders that will consider adding the negative equity onto a new agreement, subject to approval.

If you have already repaid at least 50% of the financed sum (the amount borrowed, plus interest, plus fees), you might instead want to consider voluntary termination (VT) of the finance agreement by returning the vehicle to the finance company.

If you are looking to end your current finance agreement and take out a new agreement, just as the first time around, your finance options are likely to be determined by your current credit status. Remember, however, that at CarFinance 247 we are able to help those with credit histories ranging from excellent to poor, so we’d be hopeful of finding the most suitable finance option for your individual circumstances.

At CarFinance 247, you can choose a vehicle (car, van, motorbike or motorhome) from any reputable dealership in the UK.

Get a quote No impact on your credit score

Rates from 6.9% APR. Representative APR 27.4%

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Tim Carpenter, Dedicated car finance expert
Tim Carpenter Car Finance Expert
5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9% APR: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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