Car Finance Settlement Calculator | Magnitude Finance (2024)

FAQs

How to find out settlement figure on car finance? ›

By law your lender has to post a settlement figure to you within 12 days – usually it will arrive straight away via email or in the post. It must be a letter headed official document. Sometimes you may have an online portal where you can log in to view your outstanding loan amount.

Once the settlement date has been decided, we calculate your settlement figure by taking the current capital element of the balance outstanding, adding the interest due up to the agreed settlement date, plus one month's additional interest (as outlined above).

To determine a potential settlement value, they first combine the total of medical expenses to date, projected future medical expenses, lost wages to date and projected future lost income. The resulting sum is then multiplied by the pain and suffering multiplier value to produce a projected settlement amount.

You can negotiate the car's value with the adjuster or hire an attorney to come to a settlement.

Understanding your settlement figure

Your balance might be lower than your settlement figure because of a Direct Debit payment you've made. A Direct Debit could still go out after you get a settlement figure and before you pay off your loan. This will reduce the amount you owe and make your balance lower.

It comes down to math. Very roughly, if you think that you have a 50% chance of winning at trial, and that a jury is likely to award you something in the vicinity of $100,000, you might want to try to settle the case for about $50,000.

Typically, the settlement price is set by determining the weighted average price over a certain period of trading, typically shortly before the close of the market.

Settlement amounts are typically calculated by considering various economic damages such as medical expenses, lost wages, and out of pocket expenses from the injury.

Contact your finance company and ask them for a “settlement figure” This is the amount of money they require to pay off your loan in full. Your settlement figure is generally valid for 10 days (but there'll be a 'valid until' date on the letter they send to you)

However, it may be that you can get a better offer by doing the settlement agreement negotiation on the basis of goodwill. There may not be any commercial incentive for them to pay you more, but they may genuinely want to be helpful and show gratitude for your hard work.

How to negotiate a car payoff settlement? ›

Look at the real cost of paying off the loan before you negotiate to be sure it's affordable. Besides the payoff amount, make sure you can cover costs such as any prepayment penalties or taxes on the forgiven debt.

Write to the lender and ask them to tell you the total amount you must pay to clear the loan in full, this is called an 'early settlement figure'. The lender must tell you the amount you need to pay in full. How much interest you have to pay depends on how much of it you've paid already.

A: In California, the average car accident settlement amount is anywhere between $20,000 – $30,000, depending on the overall severity of the injuries sustained and any associated property damages, lost wages, etc. This is for more moderate cases in terms of their severity.

Paying the settlement figure to clear your finance is cheaper than continuing with your repayments. You want to own the car outright. When you finance a car through hire purchase or PCP, you won't own the car until you make all your payments, so paying it off early means you own it sooner.