Settlement vs Refinance Calculator
Should you continue with your current deal or settle early and refinance at a better rate? Enter both sets of figures to see a side-by-side comparison of total costs and potential savings.
Frequently asked questions
When does it make sense to refinance car finance?
Refinancing makes sense when you can get a significantly lower APR, especially if you are early in the agreement (so more interest remains). The saving must outweigh any early settlement costs and the hassle of arranging new finance.
Can I refinance PCP as well as HP?
Yes. You can settle a PCP deal early and take out a new loan or PCP to cover the settlement figure. However, PCP refinancing is less common because the balloon payment complicates the economics. Use the early settlement calculator to get your PCP settlement figure first.
Does refinancing affect my credit score?
Applying for new finance triggers a hard credit search, which temporarily lowers your score. The old agreement will show as settled on your credit report (which is fine). Overall, refinancing has a minimal long-term impact on your credit score if you keep up payments.
Are there any fees for settling early and refinancing?
Under the Consumer Credit Act, the maximum charge for early settlement is 58 days of additional interest. Some new lenders may charge arrangement fees. Factor both into your comparison. This calculator includes the 58-day interest in the settlement figure.
How quickly can I refinance?
Request your settlement figure (lenders must provide it within 12 working days), arrange new finance, and pay the settlement. The settlement figure is usually valid for 28 days. The whole process typically takes 2–4 weeks.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.