Car early settlement calculator

Penalties. Most lenders follow the industry standard, which tabulates the final penalty sum by adding up 1% of the initial loan amount, to the 20% of the remaining interest.

Simply put, it's the amount of money you have to pay back to the finance company to completely pay off your agreement. An early settlement figure is the amount outstanding, minus a rebate of interest and charges if you want to pay off your car finance early.

The settlement on these agreements is the sum of the outstanding capital balance plus daily interest, as well as an early termination fee which is based on three months' interest.

Paying off your debt in a shorter time span than the repayment period can be a great relief. According to a reputable vehicle finance company, settling vehicle finance early will save you from the interest changes that occur over the long term.