A settlement calculator provides possible estimated amounts that a defendant could offer to settle a personal injury or wrongful death lawsuit. If you have been injured, you may be eligible to file a legal lawsuit to recover medical costs and lost wages. Use our prepayment calculator to estimate the outstanding amount of your current HP or PCP contract. The settlement amount is the amount you'll have to pay to terminate your financing contract early and become the legal owner of the car.
There are a large number of reasons why you might need to get out of your agreement before the deadline officially ends. Perhaps you are having difficulty paying your financing and need to switch to a cheaper car with a lower amortization; perhaps you have had a second child and now you need to exchange your sports car for an off-road vehicle? Or have you moved to the city center and don't need a car? Whatever the reason for your decision, you can request a settlement amount from your lender at any time. It will usually consist of your outstanding loan balance plus administrative expenses. Most lenders also include an early cancellation fee.
The settlement figures are usually valid for 28 days, but the figure indicated may change if, in the meantime, you make your normal monthly payment. Obtaining a settlement amount is the first step in ending your funding early. When you sign on the dotted line, you'll sign a legally binding contract that can last up to six years. Not only can a lot change in that time, but this means that you can't just abandon your deal.
With a PCP or HP loan, the car won't be your property until the loan ends and you've made all the necessary payments. You can't sell or offer it in partial exchange for a new model until you've liquidated the funding and done things official. Early settlement has several potential advantages, although that doesn't mean it's right for everyone. In a perfect world, your car and your financing contract will fit your life perfectly.
Your payments will be affordable, and your car will continue to provide that effervescence of excitement every time the engine starts. It is to be expected that this will be the case at the beginning of your loan term, but now things may not be so idyllic. With an early settlement, you can terminate your contract and switch to a new offer or car that best fits your circumstances. You could also save some money by skipping the interest due on the rest of your loan. Most of the liquidation figures will subtract the amount of interest you would have paid from your outstanding balance.
If you have a lump sum saved or are eligible for a personal loan with a lower interest rate, you can pay off your car finance and use that extra money for something you really want (does anyone want a last-minute trip to the Mediterranean?) On the other hand, early settlement isn't a magic solution. It's worth keeping in mind that the additional fees can sometimes exceed any amount of money you can save in interest. With a PCP offer, you'll also have to pay the lump sum payment. You don't have the option of simply returning the car as if you had kept it until the end of the loan term.
There is also a risk that the capital will be negative. If your car has been tested and has depreciated (lost value) over time, it may now be worth less than the liquidation amount. You could run out of pocket money if you decide to liquidate the financing and then decide to sell or partially exchange the car for a smaller amount. If you are thinking of paying off your loan early, you can contact your lender to request a settlement amount at any time.
Be prepared to be asked for some details, including why you want to terminate the agreement early; they may also ask you to confirm your request in writing. Once you receive the payment amount, it will normally be valid for 28 days. It's worth knowing that if you make a payment after you've made the request, the figure may change. With this in mind, you can schedule your request immediately after making the monthly payment to avoid any discrepancies. There is no right or wrong answer when deciding whether to pay off your funding early or not.
It all depends on you, your personal priorities and the reason you're thinking about reaching an agreement. If you have money to spend and want to avoid paying additional interest, you want to sell the car to make some extra money, or if you've fallen in love with a new set of wheels and want to trade in your car for a newer model, paying off your financing early might be the best option for you. However, the amount you'll have to pay and the amount of interest you'll save will depend on when you're on the loan term. If you only have a few months left to close a deal with HP, for example, your liquidation amount may be relatively low, but you won't save much in interest either. The way these loans are set up means that you'll pay the most interest at the start of your loan.
If the end is already in sight, it's best to pay off the loan normally rather than having to pay any possible additional fees, such as an early cancellation fee. If you don't have the funds available to pay the settlement amount (especially if it includes a lump sum payment from the PCP), you have negative capital, or you don't think you'll qualify for a higher interest rate if you try to refinance, opting for voluntary termination may be your preferred option. Voluntary termination is a legal right, established in Section 99 of the Consumer Credit Act of 1974, that allows you to cancel your loan and return the car to your lender at any time. Just tell the lender that you want to cancel and return the car voluntarily. It is important to note that you will have to pay 50% of the total amount to be paid (including the lump sum payment in a PCP).
If you've made some payments, but haven't reached this point yet, you'll have to pay the difference. If you have already paid more than 50%, you can return the car without having to pay anything else. Even so, additional charges may apply if the car suffers damage that exceeds normal wear and tear, and it's important to note that you'll still be responsible for delays (late payments) before the termination. Opting for voluntary termination should not affect your credit score, but it will appear on your credit report and will be visible to other lenders. It's worth keeping in mind that this could make lenders more hesitant to approve your funding request in the future, especially if you've exercised your right to voluntary cancellation more than once.
Each lender has different ways of calculating their settlement figures, so the only way to find out how much you'll have to pay is to ask them. That said, the details of the administrative fees and early cancellation charges due should be listed in the terms of your car finance agreement. You can also get an estimate of the amount of your settlement using our early settlement calculator. If your settlement amount and your outstanding balance are a little different, don't freak out; this is completely normal. In fact, they are two different things. Your outstanding balance is the amount you have left to pay on your loan and will include both the remaining monthly payments and the interest due.
The settlement figure is the result of a calculation that takes into account the outstanding balance, but also adds any administrative fees and early cancellation fees associated with the early end of the loan term. Usually, the lender will also subtract interest that you no longer have to pay. Settlement amounts are generally calculated taking into account various economic damages, such as medical expenses, lost wages, and out-of-pocket expenses resulting from the injury. However, non-economic factors should also play an important role.
Non-economic factors may include pain and suffering and loss of quality of life. An experienced personal injury attorney will be able to evaluate your claim for you, request all of your medical bills, estimate lost wages and out-of-pocket expenses, and file a lawsuit for non-economic damages. Once an insurance adjuster verifies that you have hired an attorney and has a detailed list of damages with specific monetary expenses, they will be more likely to make you a fair and reasonable settlement offer for your claim. The early settlement amount is the amount you still owe, plus interest and charges if you want to pay off your car finance early.
Our liquidation calculator does not include any additional penalties that may be incurred. In the case of regulated agreements, this is usually an exit fee equivalent to about 58 days of interest. Calculating a reasonable settlement offer involves adding together economic losses, such as medical bills and lost wages, and non-economic damages, such as pain and suffering. Established formulas are often used to arrive at a figure that reflects the true impact of the accident on your life.
This method ensures that both tangible and intangible losses are considered in the final amount of the liquidation. That means that contacting a personal injury lawyer for a settlement offer after an accident is completely risk-free.