What is a PCP settlement figure and how does it work?
A settlement figure is the exact amount your finance provider needs, on a given date, to clear a PCP agreement early and end your obligation to it. It isn't a published number you can calculate perfectly from public information — only your lender holds the precise figure, because it depends on their own calculation method, any fees, and the exact date you settle.
Why it isn't just "payments left"
It's tempting to assume the settlement figure is simply the number of remaining monthly payments multiplied by the monthly amount. It isn't, for two reasons. First, PCP interest is front-loaded in most amortising agreements, so the outstanding balance doesn't fall in a straight line — early in the agreement, a larger share of each payment is interest rather than capital. Second, and more importantly, settling early means paying off the whole remaining balance, which includes the balloon payment (GFV) that your regular monthly payments were never structured to pay off — see below.
Settlement figure vs the balloon (GFV)
The balloon, or Guaranteed Future Value, is the optional final payment at the end of a full-term agreement — the amount you'd pay if you kept the car after all your regular payments were made. The settlement figure is different: it's what you owe to clear the agreement right now, part-way through, and it includes both the outstanding capital on your regular payments and that deferred balloon amount, since none of it has been paid off yet if you're settling early. As you get closer to the end of the agreement, the settlement figure moves closer to the balloon amount, since less regular-payment capital is still outstanding.
Settlement figure vs current vehicle value
The settlement figure is what you owe. The car's value is what it's currently worth. Comparing the two tells you your equity position — whether you'd have money left over, or a shortfall to cover, if you settled and sold the car today.
Positive equity example
Illustrative figures only. Settlement figure: £15,300. Car's current market value: £16,500. Settling and selling would leave roughly £1,200 over — positive equity that could go toward a deposit on a replacement.
Negative equity example
Illustrative figures only. Settlement figure: £17,800. Car's current market value: £16,200. Settling and selling would leave a shortfall of roughly £1,600 — negative equity you'd need to cover from another source, or carry into whatever you do next.
Why only your lender can confirm the real figure
Any settlement figure you see outside an official quotation — including the estimates on this site — is a projection based on standard finance maths, not your lender's own records. Real agreements can include fees, rebates on unearned interest, or lender-specific calculation conventions that a generic formula can't reproduce exactly. Treat an estimate as a planning figure to understand roughly where you stand, and always request the official figure from your finance provider before making a decision that depends on the exact amount.
Frequently asked questions
How do I get my exact settlement figure?
Contact your finance provider directly — by phone, through their online account portal, or in writing. They're required to give you a settlement figure on request, usually valid for a set number of days, since the amount reduces daily as interest accrues.
Does the settlement figure include the balloon payment?
Yes. Settling early means paying off everything still owed under the agreement, including the deferred balloon (GFV), not just the regular monthly payments you have left — that's the main reason it isn't simply "payments left × monthly amount".
Is the settlement figure the same every day?
No — it falls slightly each day as interest accrues on a smaller amount, and any quoted figure is usually only guaranteed for a limited window. If you're planning to settle on a specific date, get a figure valid for that date rather than relying on an older quote.
Last reviewed: 30 August 2026.