Early Settlement Calculator
Thinking of paying off your car finance early? Under the Consumer Credit Act, you have the right to settle most agreements early and receive a rebate on future interest. Enter your original loan details to estimate your settlement figure.
Frequently asked questions
How is the early settlement figure calculated?
The settlement figure is the present value of all remaining payments (the outstanding balance) minus an interest rebate. Under the Consumer Credit Act, the minimum rebate is 58 days of interest on the outstanding balance.
Do I have a right to settle early?
Yes. Under section 94 of the Consumer Credit Act 1974, you can repay a regulated credit agreement early at any time. The lender must provide a settlement figure within 12 working days of your request.
Are there early settlement fees?
For most car finance agreements, the only charge is up to 58 days of additional interest (not a fee, but a cap on how much rebate the lender must give). Some agreements taken out before 2005 may use different calculation methods.
Should I settle my car finance early?
It depends. Settling early saves interest, but make sure you would not be better off investing the cash elsewhere. Also check whether your agreement has a fixed-sum early repayment charge (rare in UK car finance but possible on older agreements).
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.