What does equity after settlement mean?

It is the entered vehicle value minus the settlement figure. A negative result shows the estimated shortfall before other costs; a positive result is not guaranteed cash until a sale is completed.

Does a lower monthly replacement payment mean it is cheaper?

No. A longer term can lower the monthly payment while increasing total payments. The planner compares entered future payments and fees as well as the monthly change.

Does this calculate voluntary termination?

No. Rights and charges depend on the agreement, payments, vehicle condition and the law. Check the contract, provider and independent guidance before acting.

Car Finance Settlement & Refinance Planner UK

Continue your plan

Useful next calculations

Related to this calculation

Compare the quoted car-finance structures

Use actual cash price, deposit, APR, fees and optional final payment to compare the available routes.

Put the payment into the household plan

Keep the full monthly effect visible alongside bills, annual renewals and a savings target.

When to use this calculator

When you need a fast estimate before making a bigger decision.
When you want to compare a few scenarios using the same assumptions.
When you need a clearer starting point before using a detailed quote or formal document.
When you want to sanity-check a figure you have seen elsewhere.

A realistic UK planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic UK planning example
Input	Value
Provider settlement figure (£)	12000
Current monthly payment (£)	6
Months left on current agreement	6

After entering these figures, review settlement figure and future current payments together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Settlement Figure

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Future Current Payments

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Method & assumptionsAuthoritative sources

This planner separates three numbers that are often confused: the provider's current settlement figure, a realistic sale or trade-in value, and the future payments under a replacement quote. It makes any estimated negative-equity shortfall visible before a new monthly payment is compared.

The replacement route totals the entered monthly payments and separately payable fees only. It does not assume approval, sale proceeds, vehicle condition, insurance, maintenance, mileage charges, optional final payments or a particular early-exit right.

Get written figures and read the agreement before deciding. If payments are becoming difficult, contact the finance provider early and seek free independent debt advice rather than assuming refinancing is available or suitable.

Common mistakes

!Using optimistic assumptions without testing a more cautious scenario.
!Comparing outputs from different tools without checking that the inputs match.
!Treating the result as a final quote instead of a planning estimate.
!Rounding inputs too aggressively.

What to do next

Try at least one more scenario so you can compare a realistic range.
Use the related calculators below to cross-check the decision from another angle.
Write down the key outputs from your best scenarios before you decide.
If the result surprises you, change one input at a time to isolate the driver.

Frequently asked

Monthly payments do not necessarily equal the amount needed to end an agreement early. Ask the finance provider for a current written settlement figure before comparing options.

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