PCP settlement figures explained
A current lender settlement figure is the starting point for understanding the cost of clearing your finance early.
A settlement figure is the amount your finance provider says is required to clear the agreement at a particular point in time. It is not simply the monthly payments you have left added to the balloon payment.
Why it can be different from the scheduled balance
Early settlement can involve rebates of future interest and contract-specific treatment under consumer-credit rules. That is why My PCP Check deliberately asks you to enter the lender’s current settlement figure rather than claiming to calculate an official quotation.
Settlement and vehicle value
Once you have a current settlement figure, compare it with a realistic current vehicle value. If the car is worth more than settlement, the difference is positive equity before transaction costs. If settlement is higher, the difference is negative equity.
Settlement is not voluntary termination
Paying a settlement figure is a route to clearing the finance. Voluntary termination is a statutory mechanism with its own rules and 50% liability concept. A lender’s settlement quotation and the 50% figure shown in an agreement answer different questions.
How long is a settlement quote valid?
Use the validity date shown by your finance provider. Payments, interest timing and account activity can cause a new quotation to differ, so avoid relying on an old screenshot or dealer estimate.
Primary and consumer sources
Your signed agreement and current lender figures control contract-specific amounts.
Last reviewed: 5 September 2026