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Car finance ›
How do you calculate my Early Settlement Figure?
Updated: Monday, 18 September 2023
At any point during your agreement, you can ask us to provide an ‘Early Settlement Figure’ (ESF). Your ESF is the amount you need to pay off to end your agreement and will depend on lots of factors such as how much you’ve already paid back.
The ESF will include a rebate of interest, which is the amount of interest you’ll no longer need to pay once you early settle. However, there will still be a small amount of interest included within your ESF, which is 58 days’ worth of interest from the date you requested the ESF. This is in line with the Consumer Credit (Early Settlement) Regulations 2004.
Your ESF will be valid for 28 days. If you pay the full settlement amount by the date provided, we will end the agreement and transfer legal ownership of the vehicle to you*.
See an example of how your ESF is calculated below:
£2,133.36 (Outstanding balance) – £331.79 (rebate amount) = £1,801.57 (Early Settlement Figure)
*As part of the process, we might agree you can sell the vehicle privately to a reputable dealer, to raise funds towards your ESF. However, if there is a shortfall between the amount you sell the vehicle for and the full ESF, then you will need to pay the difference so that we still receive the total settlement amount.
How to settle your agreement early
If you’d like to settle your agreement early, then there is an easy process you must follow:
At any point during your agreement, you can ask us to provide an ‘Early Settlement Figure’ (ESF). Your ESF is the amount you need to pay off to end your agreement and will depend on lots of factors such as how much you’ve already paid back.
The ESF will include a rebate of interest, which is the amount of interest you’ll no longer need to pay once you early settle. However, there will still be a small amount of interest included within your ESF, which is 58 days’ worth of interest from the date you requested the ESF. This is in line with the Consumer Credit (Early Settlement) Regulations 2004.
Your ESF will be valid for 28 days. If you pay the full settlement amount by the date provided, we will end the agreement and transfer legal ownership of the vehicle to you*.
See an example of how your ESF is calculated below:
£2,133.36 (Outstanding balance) – £331.79 (rebate amount) = £1,801.57 (Early Settlement Figure)
*As part of the process, we might agree you can sell the vehicle privately to a reputable dealer, to raise funds towards your ESF. However, if there is a shortfall between the amount you sell the vehicle for and the full ESF, then you will need to pay the difference so that we still receive the total settlement amount.
How to settle your agreement early
If you’d like to settle your agreement early, then there is an easy process you must follow:
Use our built-in ESF feature via your My Moneybarn account.
We’ll send you an ESF, the expiry date and instructions for payment.
Make payment by the settlement expiry date.
You become the legal owner of the vehicle and your agreement with us ends.
Use our built-in ESF feature via your My Moneybarn account.
We’ll send you an ESF, the expiry date and instructions for payment.
Make payment by the settlement expiry date.
You become the legal owner of the vehicle and your agreement with us ends.
FAQs about early settlement
FAQs about early settlement
Can I cancel my monthly payment if I’m settling?
You should make any normal monthly repayments which are due until you’ve received confirmation that your account is settled. If we need to refund your last monthly payment after you’ve settled your agreement, we’ll pay that back to you within 7-10 working days of the account being settled.
What will happen if I do settle my agreement or decide to do nothing?
If you pay the full early settlement amount by the agreed date, you will clear the agreement and we’ll transfer legal ownership of the vehicle to you. We’ll then send you confirmation. If you decide not to proceed with the settlement, the agreement will just continue and your regular payments will be due as normal.
What are your rights if you settle your car finance early?
The Consumer Credit Act provides you certain rights regarding ending your car finance agreement early. However, these rights differ depending on which car finance deal you have. The act also has stipulations designed to protect the car finance company in the event of an early settlement.
Can I cancel my monthly payment if I’m settling?
You should make any normal monthly repayments which are due until you’ve received confirmation that your account is settled. If we need to refund your last monthly payment after you’ve settled your agreement, we’ll pay that back to you within 7-10 working days of the account being settled.
What will happen if I do settle my agreement or decide to do nothing?
If you pay the full early settlement amount by the agreed date, you will clear the agreement and we’ll transfer legal ownership of the vehicle to you. We’ll then send you confirmation. If you decide not to proceed with the settlement, the agreement will just continue and your regular payments will be due as normal.
What are your rights if you settle your car finance early?
The Consumer Credit Act provides you certain rights regarding ending your car finance agreement early. However, these rights differ depending on which car finance deal you have. The act also has stipulations designed to protect the car finance company in the event of an early settlement.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
