Car Finance Early Settlement Calculator
Work out whether settling your PCP or HP agreement early leaves you in positive or negative equity against the car's current value — and when Voluntary Termination becomes an option.
Not financial or legal advice. This is an estimate — representative figures, not financial or legal advice. Always get an official settlement figure and confirm your Voluntary Termination position directly with your finance provider. If you're struggling with car finance repayments, free, independent help is available from MoneyHelper (moneyhelper.org.uk) and StepChange (stepchange.org).
Keep paying as agreed for now
You're £5,130 in negative equity, and you haven't yet reached the 50% Voluntary Termination point — about 0 more months of payments to go. Settling or terminating now would likely cost you money; the equity position usually improves the further into the agreement you get.
Estimated from your monthly payment, months remaining and balloon — get an official figure from your lender before acting.
Estimated using your rebate % — always get an official settlement figure from your lender before making a decision.
Negative — you'd need to find extra money to clear the agreement.
Under sections 99–100 of the Consumer Credit Act 1974, once you've paid 50% of the total amount payable under a regulated HP or PCP agreement, you have the legal right to hand the car back and end the agreement, owing nothing further — as long as it's returned in good condition.
Add the total amount payable and what you've paid so far to check your Voluntary Termination position.
Before you act
- Always request an official, dated settlement figure from your finance provider — it's the only figure that's contractually accurate, and it's usually only valid for a set number of days.
- Voluntary Termination requires the car to be returned in good condition and, on some agreements, within a specified mileage — excess wear, damage or mileage can mean an extra charge on top.
- If you're in negative equity, rolling it into a new finance agreement on the next car just adds someone else's debt to your new loan — it doesn't disappear, it compounds.
How this is worked out
The outstanding balance, when not entered directly, is estimated as your remaining monthly payments plus the balloon/GMFV for a PCP. The settlement figure, when not entered directly, applies your chosen rebate percentage to that balance as a simple approximation of the interest rebate lenders must apply — real settlement figures use a more precise actuarial calculation set out in the Consumer Credit (Early Settlement) Regulations 2004. Equity is simply the car's current value minus the settlement figure. The Voluntary Termination threshold is 50% of the agreement's total amount payable (deposit plus every contracted instalment, excluding any optional final PCP payment); once what you've paid reaches that point, sections 99–100 of the Consumer Credit Act 1974 give you the right to hand the car back.