To find out how much finance is left on your car, ask your lender for a settlement figure, through your online account or by phone. The settlement figure is what it costs to clear the agreement on a set date, and it is usually different from the balance on your statements. A car check by reg shows whether finance is registered against a car and with which lender, not how much is left: an outstanding finance check tells you who to ask.
Your lender has to give you a settlement figure when you ask for one. Under the Consumer Credit Act 1974 and its regulations, it must send it within 7 working days, and you do not have to ask in writing. The rest of this guide covers why the figure differs from your statement balance, what to do if you do not know who your lender is, how to sell or part-exchange a car that still has finance on it, and what a buyer should ask a seller for.
- Ask the lender, not a car check. Only the lender knows how much is left, and only the person who took out the agreement can ask for the settlement figure
- Settlement figure and statement balance are different numbers. Settling early earns a rebate of future interest, so the settlement figure is usually lower than the remaining payments added up
- The lender must reply within 7 working days. That is the period set by regulations made under section 97 of the Consumer Credit Act 1974, and the request need not be in writing
- On a PCP, the figure includes the final payment. The optional final payment is part of what you borrowed, so it is in the settlement figure
- Selling? Settle first. You do not own a car on HP or PCP until it is paid off, so the finance has to be cleared before or as part of the sale
- Buying from someone with finance? Ask the seller for the lender's settlement letter, then check the reg to confirm the record has cleared
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How do I find out how much finance is left on my car?
There are three ways to get the figure. All of them go through your lender.
- Your online account or app. Most lenders show a settlement figure in the customer portal. Look for "settlement figure", "settle my agreement" or "early settlement". The figure on screen will show the date it is valid to.
- Phone the lender. Have your agreement number and registration ready. The lender will check who you are and can give the figure over the phone, then send a written settlement statement.
- Write or email. If you would rather have it in writing from the start, ask for a settlement statement. You do not have to put the request in writing, but it gives you a dated record.
The settlement statement should show the amount to pay, the date it is valid until, and how to pay it. If you pay after that date, ask for a new figure, because interest keeps adding up day by day until the agreement is closed.
What the law says about settlement figures
Most car finance agreements with individuals, including hire purchase and PCP, are regulated by the Consumer Credit Act 1974. These are the rules that matter here.
| Rule | What it means for you | Source |
|---|---|---|
| Right to settle early | You can pay off a regulated agreement early at any time by telling the lender and paying what is due, less any rebate. The notice need not be in writing | Section 94, Consumer Credit Act 1974 |
| Right to a settlement statement | Ask and the lender must give you a statement of the amount needed to settle. The request need not be in writing (unless the agreement is secured on land) | Section 97, Consumer Credit Act 1974 |
| Time limit | The lender must give you the statement within 7 working days of your request | Regulation 4, Consumer Credit (Settlement Information) Regulations 1983 |
| Rebate of interest | Settling early reduces what you pay, because you get a rebate of the interest for the time you no longer borrow the money | Consumer Credit (Early Settlement) Regulations 2004 |
Two details are worth knowing. A lender does not have to answer a second request for a settlement statement made less than a month after it answered the first one. And if you repay more than £8,000 early in any 12 months while the rate is fixed, the lender may claim a capped charge for early repayment under section 95A, which would be included in the settlement figure. Read the statement rather than assuming the figure is just the balance.
If your lender does not give you a settlement statement in time, the Act says it cannot enforce the agreement while the failure continues. If you cannot get a straight answer, complain to the lender in writing, and if that does not resolve it, you can take the complaint to the Financial Ombudsman Service.
Why the settlement figure is different from my statement balance
Your annual statement or app often shows a "balance outstanding". On many agreements that is the total of your remaining payments, including the interest built into them. The settlement figure is what you would pay to close the agreement today, or on the date shown.
| Statement balance | Settlement figure | |
|---|---|---|
| What it is | What you would pay if you kept up every remaining payment to the end | What you pay to end the agreement on a set date |
| Future interest | Often included | Reduced by the statutory rebate |
| On a PCP | Usually includes the optional final payment | Includes the optional final payment |
| Changes | Falls as you make payments | Changes daily, so it comes with a valid-until date |
| Who can get it | On your statement or account | Only the person named on the agreement, from the lender |
Because of the interest rebate, the settlement figure is usually lower than the remaining payments added together. The difference is largest early in the agreement, when more of what is left is interest.
What about PCP?
On a PCP, the optional final payment (sometimes called the balloon or guaranteed future value) is part of the amount you borrowed. So the settlement figure includes it, even if you had planned to hand the car back at the end. That is why a PCP settlement figure can look high compared with your monthly payments.
If your aim is to give the car up rather than own it, there is another route. Under sections 99 and 100 of the Consumer Credit Act 1974, you can end a regulated HP or conditional sale agreement (which includes most PCPs) by voluntary termination and return the car. You owe the amount by which half the total price of the agreement exceeds what you have paid and what is already due, unless the agreement says less, plus any charge if you have not taken reasonable care of the car. Give the notice to the lender in writing. Our HP vs PCP guide covers voluntary termination in detail, and the lender can tell you where you stand.
I don't know who my lender is
Look at your bank statements for the monthly direct debit, which names the lender, or at the paperwork from when you bought the car. If you bought through a dealer, the dealer can tell you which finance company it used.
If the car came with finance you did not arrange, or you are trying to find out whether a car you bought is on finance at all, run an outstanding finance check on the registration. It searches the finance records lenders register with Experian and shows whether an agreement is recorded against the car, and if so the finance company, the agreement type, the start date and the term, with the lender's phone number where the records hold it. It does not show how much is left, but it tells you who to ask.
If you have bought a car and a check shows finance you did not know about, read what happens if you buy a car with outstanding finance before you contact anyone.
Can I sell a car with finance on it?
Yes, but you have to settle the finance as part of the sale. On hire purchase or PCP the lender owns the car until the agreement is paid off, so you do not have the right to sell it before then. Selling a car that is still on finance without settling it leaves you liable to the lender for the debt, and the buyer can claim against you too.
Selling privately
- Get a settlement figure valid for a date a little after you expect to sell, so it does not expire mid-sale.
- Tell buyers up front that there is finance on the car and how you will clear it. A buyer running a check will see the agreement anyway.
- Clear it before the sale if you can. Pay off the agreement, wait for the lender's letter confirming it is settled, and give the buyer a copy.
- If you need the buyer's money to clear it, have the buyer pay the settlement figure to the lender directly and the rest to you. Get the lender's written confirmation that the agreement is closed before the buyer drives away.
- Keep the settlement letter. It is your proof that you sold the car free of finance.
If the car is worth less than the settlement figure, you have negative equity: you need to find the difference from your own money before you can sell.
Part-exchanging with a dealer
Part-exchanging a car with finance on it is routine. The dealer gets the settlement figure (with your permission, or from you), pays the lender directly and takes that amount off your part-exchange value.
- If the car is worth more than the settlement figure, the difference goes towards your next car.
- If it is worth less, you have to cover the shortfall, either in cash or by adding it to your next agreement. Adding it means you start the new deal owing more than the new car is worth, so think carefully.
- Ask the dealer to confirm in writing that it will settle the agreement, and a few weeks later check with your lender that the agreement shows as closed. Until it is, you are still the borrower.
For more on the trade-off, see part-exchange vs selling privately.
Buying a car from someone who still has finance on it
As a buyer, you cannot ask the seller's lender for a settlement figure, because only the person who took out the agreement can. What you can do:
- Check the reg first. An outstanding finance check shows whether an agreement is recorded and who the lender is.
- Ask the seller for the settlement letter from the lender, showing the agreement number, the registration or VIN and the amount to settle.
- Have the finance cleared first, or pay the settlement figure to the lender directly and only the balance to the seller.
- Phone the lender yourself on a number you found independently, to confirm the agreement is closed.
- Run the check again before you hand over the rest of the money, and allow a little time for the record to update.
Never pay the seller on a promise to clear the finance afterwards. If they do not, you knew about the finance, so the Hire Purchase Act 1964 will not protect you. Our guide to how to check if a car is on finance walks through the steps, and what happens if you buy a car with outstanding finance covers your rights if it goes wrong. If you are unsure where you stand, get advice from Citizens Advice or a solicitor.
Frequently asked questions
How do I find out how much is left on my car finance?
Ask your lender for a settlement figure, through your online account, app or by phone. It shows the amount to clear the agreement on a set date. A car check cannot show it, because only the lender holds the figure.
How long does a lender have to give me a settlement figure?
7 working days from your request, under section 97 of the Consumer Credit Act 1974 and regulation 4 of the Consumer Credit (Settlement Information) Regulations 1983. Many lenders show it instantly in their online account.
Why is my settlement figure lower than my balance?
Because settling early earns a rebate of the interest you would have paid in future. Your statement balance often includes that future interest, while the settlement figure takes it off.
Does a car check show how much finance is left?
No. A car check shows whether a finance agreement is recorded against the car, with the lender, agreement type and start date where the records hold them. The amount left is held by the lender, and only the borrower can ask for it.
Can I sell my car if it still has finance on it?
Yes, as long as the finance is settled as part of the sale. Either pay it off first, or have the buyer or dealer pay the settlement figure to the lender directly, and keep the lender's letter confirming it is closed.
Can I find out how much finance is left on a car I am buying?
Not directly. Ask the seller for the lender's settlement letter, and confirm it with the lender yourself. Then check the reg again once it has been paid, so you can see the record has cleared.