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Zuto is a credit broker, not a lender. Our rates start from 8.9% APR. The rate you are offered will depend on your individual circumstances. Representative Example: Borrowing £9,000 over 60 months with a representative APR of 20.9% the amount payable would be £234 a month, with a total cost of credit of £5,047 and a total amount payable of £14,047.

Zuto Limited. Registered in England under number 05722976. Registered office: Winterton House, Winterton Way, Macclesfield, Cheshire SK11 0LP. Zuto Limited is acting as a broker and not as a lender. Authorised and regulated by the Financial Conduct Authority, registration number 452589. Zuto can introduce you to a limited number of finance providers, based on your credit rating, Zuto won't charge you anything for this service, but do get a fee from the lender which varies based on the product or amount borrowed.

How to settle car finance

If you entered into a finance agreement in order to get a car, you might be wondering how to settle car finance. For the most part, this is simple; you pay back the amount you borrowed in full, plus any additional fees specified in your contract.

Certain forms of car finance will require additional fees, while for others as soon as you make your last payment, the debt is settled. If you want to settle earlier than your final payment, there may also be charges to face.

Settling your car finance early

You can pay off your repayment schedule early at a time of your choosing with all kinds of car finance. With some forms of finance (such as conditional sales, personal loans and hire purchase agreements), there may be an early repayment charge, but you should save on interest because you’re paying the loan off sooner.

With personal contract purchase (PCP) car finance, you do have the option to settle early. However, due to the fact that you’ve been paying only a small amount of the total finance borrowed, your figure for settlement will be much higher than the other options for finance.

Settling a finance agreement without keeping the vehicle

If you want to settle your finance agreement without keeping the vehicle, you must return the car in a condition that makes it possible to resell. If the car has damage beyond acceptable wear and tear, you’ll be asked to pay for it when you settle up.

Settling HP agreements

You can settle car finance for an HP agreement by paying the remaining amount left on the total amount borrowed.

If you want to keep the vehicle when you settle your car finance, you must pay an “option to purchase” fee, normally around £100 to £200.

Settling a PCP

You can settle car finance for a PCP by repaying the outstanding amount borrowed and returning your vehicle.

If you wish to own the vehicle, you must also pay a “balloon payment”. This figure includes what the lender estimates the car to be worth at the time your agreement comes to an end.

Charges for PCPs

If you’re returning the vehicle on a PCP agreement, you’ll be charged for any damage to the vehicle beyond acceptable wear and tear, you’ll be charged if you went above the agreed mileage stated in your contract. This is typically charged at between seven and 10p per mile. This might not sound like much but it can add up - if you overstep by 1,000 miles, for example, you could end up paying £100 in charges.

Settling a personal or fixed car loan

When settling a personal or fixed car loan, once you pay the outstanding amount left on your balance, the car is yours and your debt is settled.

Settling a conditional sale

Settling a conditional sale car finance agreement works in the same way as a personal loan. Once you’ve settled any outstanding amount, your car finance deal is finished and the car is yours.

Support and advice on car finance

At, we pride ourselves on providing an invaluable resource where car buyers can cross reference and compare many different forms of car finance without having to use multiple sites. We also offer both advice and support when you’re looking into car finance as a possible option for buying a vehicle.

If you would like to settle up your car finance agreement and have any questions or concerns, you can take a look around our website for further information. You can also contact us for further guidance and advice.

Other related FAQs

Looking for more related content to this? We’ve picked a selection of related topics that you may find helpful

You can approach lenders directly to get a car loan for a used car. However, it’s often best to use an online broker instead. This approach can save you time and help you to find the most competitive deals.

In many cases, yes, changing or part-exchanging a car with outstanding finance is possible. Since car finance can’t be moved from one car to another, you (or a dealership you’re getting your next car from) will have to settle the current loan and begin another on your next vehicle.

No, you cannot transfer your car finance to another car. However, depending on your circumstances, you may be able to settle your current finance agreement and begin a new one on a different vehicle.

Car finance is calculated according to a number of factors, including the type of agreement you take out, your credit rating, the term of the loan and the size of deposit you pay.

It is possible to modify a financed car – but it’s absolutely vital that you check with the company that provides the finance that it’s okay before you do. After modification, you’ll need to inform your finance company, and insurance company that work has been carried out.

When determining interest rates on car loans, lenders take a range of factors into account, including the size of the loan and your credit rating.

In the past, car finance companies sometimes offered payment protection insurance (PPI) with their products. This is no longer the case – and the deadline has now passed for making a claim for mis-sold PPI.

Car loans are calculated according to a number of factors, including the type of loan you take out, the term of the loan and your credit rating.

Whether or not you can return a financed car depends on the type of agreement you have. If you’ve got a hire purchase (HP) or personal contract purchase (PCP) plan, you’re allowed to hand it back – as long as you have paid off at least 50% of the loan, including any fees and interest.

If you want to sell a used car with a loan, check the details of your agreement carefully. Unless you’re the legal owner of the car, you won’t be able to sell it until you’ve paid a settlement figure.