Glossary
Settlement
The moment a loan completes: money moves, the old loan is paid out, and the new contract takes effect. In a refinance, settlement is when the switch actually happens.
By Leverage Finance · Updated 17 July 2026
In a car loan refinance, settlement is the day the new lender pays your old lender the payout figure. Your old loan closes, the old lender releases their security interest over the car, the new lender registers theirs, and your repayments to the new lender begin.
You don't move any money yourself. The lenders settle directly between themselves. From your side it's paperwork and a start date. Most refinances settle within a few working days of you signing the new loan documents.
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