Settlements Fees: Some finance companies will charge a month or 2 interest as a fee. eg: Blackhorse = 1 Month
and some don’t. eg: Motonova = 0 Months (but may add an admin fee)
Therefore our car finance calculator will never hit the number exactly but will get you right in the ballpark.
Tip: Add 1 Month in the Early settlement fee field to get a deal propped and paid out and balance the books once you get hold of the settlement – you wont be far out.
HP Car Settlement Calculator — Built for Car Dealers
Accurately estimate Hire Purchase early settlement figures in seconds. No waiting for finance companies. No losing deals after 5pm.
When a customer wants to part-exchange a car on finance, every minute you wait for a settlement figure is a minute you risk losing the deal. MotorVert’s HP Car Settlement Calculator uses the Actuarial method — the same calculation required under the Consumer Credit (Early Settlement) Regulations 2004 — to give you an accurate ballpark settlement figure on the spot.
Why car dealers use this tool:
- ✅ Get instant settlement estimates evenings, weekends and bank holidays — when finance companies are closed
- ✅ Prop deals with confidence and balance the books when the official figure arrives
- ✅ Identify negative equity positions before committing to a part-exchange price
- ✅ Know the customer’s Voluntary Termination (VT) point at a glance
- ✅ Works for all major HP lenders — Blackhorse, Motonova, Close Brothers and more
How the HP Early Settlement Calculator Works
Enter four things: the amount borrowed (cash price financed, not including the deposit), the term in months, the monthly payment, and the settlement month — the month after which you want to settle. The calculator instantly returns the outstanding balance using the Actuarial (Rule of 78 replacement) method, which is the legally required calculation method for regulated HP agreements in the UK.
Settlement Fees by Lender
Many lenders add an early settlement fee on top of the outstanding balance — typically 1–2 months of interest. Use the Early settlement fee (months of interest) field to account for this:
- Blackhorse: 1 month of interest
- Motonova: 0 months (may add a small admin fee)
- Close Brothers: Typically 58 days of interest
- MotoNovo / First Response / Zuto: Varies — check the agreement
Pro tip for dealers: Add 1 month in the Early Settlement Fee field when propping a deal. You’ll be close enough to proceed — and you can balance the books precisely once the official settlement letter arrives.
Voluntary Termination (VT) — What Dealers Need to Know
Under the Consumer Credit Act 1974 (Section 99), a customer can voluntarily terminate an HP agreement once 50% of the total amount payable (capital + interest) has been paid. The MotorVert settlement calculator shows you the full month-by-month breakdown, including the exact point VT becomes available — essential for assessing negative equity risk on any part-exchange.
Frequently Asked Questions — HP Settlement for Dealers
What is an HP early settlement figure? ▼
An HP (Hire Purchase) early settlement figure is the amount a customer must pay to end their finance agreement before the final payment date. It includes the remaining capital balance plus any accrued interest to the settlement date, calculated using the Actuarial method as required by the Consumer Credit (Early Settlement) Regulations 2004.
How accurate is an online HP settlement calculator? ▼
Using the Actuarial method gives a very close estimate for most regulated HP agreements. The main variables are lender-specific settlement fees (typically 1–2 months of additional interest) and the exact settlement date used by the lender. For dealers, this is accurate enough to prop a deal and balance the books once the official figure arrives.
Can I get a settlement figure outside business hours? ▼
Most finance companies only provide settlement figures during weekday business hours. MotorVert’s calculator gives dealers an instant estimate at any time — evenings, weekends and bank holidays — so you never delay or lose a deal because the finance company is closed.
What’s the difference between a settlement figure and Voluntary Termination (VT)? ▼
A settlement figure is the amount needed to pay off the car and own it outright. VT (Voluntary Termination) is a legal right under Section 99 of the Consumer Credit Act 1974 — the customer can hand the car back once 50% of the total amount payable has been paid, with no further liability. Knowing the VT point is critical for assessing negative equity on a part-exchange, and MotorVert shows both.
What is the Actuarial method for HP settlement? ▼
The Actuarial method is the legally required calculation approach under the Consumer Credit (Early Settlement) Regulations 2004. It calculates the outstanding balance based on the present value of remaining payments discounted at the agreement’s APR — giving a more accurate result than the older Rule of 78 method, particularly for longer-term agreements.
Is this tool free for car dealers? ▼
Yes — the HP Settlement Calculator is available free on the MotorVert Lite plan. No credit card required. MotorVert also offers Starter (£99/month) and Pro (£175/month) plans including AI hero image creation, advert copy, 60-second video generation, DMS integration and ad cost tracking.
Free for UK Car Dealers — Sign Up in Seconds
The Settlement Calculator is included on the free MotorVert Lite plan — no payment details needed.
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