What is a Settlement Figure?
Car finance settlement figure advice
With car finance agreements, a settlement figure is the amount of money you owe the finance company for the loan you have taken out. The amount reduces by each repayment you make.
It’s recommended that you are aware what this figure is, in the event you consider exchanging or selling the vehicle you have financed. To do this, you need to settle with the finance provider any outstanding money you owe.
If or when you come to sell your vehicle, it may be the case that it is worth less than the amount you owe the lender. If this happens, and you find yourself looking for another car finance option. There are companies on our panel who may be willing to add what you owe to your new hire purchase agreement.
You could also perform what is called a “voluntary termination” (VT for short) of your finance agreement. To exercise a voluntary termination you need to have already paid 50% or more of the overall amount owed.
Due to the relationships we have with many car loan lenders in the UK, Socialmotors is able to help people with all types of credit backgrounds apply and get approved for car finance packages – at very low rates of interest!