Conditional Sale

What is Conditional Sale Car Finance?

A Conditional Sale (CS) agreement is a traditional way of purchasing a car or other vehicle on finance, offering a straightforward agreement that involves paying a deposit followed by equal monthly payments.

Conditional Sale is similar to a hire purchase agreement, the only difference is that with Conditional Sale you automatically become the legal owner of the vehicle once all payments have been made. With a hire purchase agreement an option to purchase fee will need to be paid to be registered as the legal owner.

At the end of the agreement, you’ll pay the last of the instalments and take ownership of the car. This structure of finance agreement is ideal for those wanting to buy a car without paying the total amount upfront. 

 Features & Benefits of Conditional Sale

• Once you’ve made all payments in your agreement, the vehicle is yours to keep.
• Flexible deposits and repayment periods up to 60 months.
• Fixed monthly costs so you can budget with confidence.
• No annual mileage restrictions.
• If you aren’t planning to sell your vehicle at the end of your agreement, you won’t need to worry about the risk of depreciation cost.

What happens at the end of a Conditional Sale agreement?

Once you’ve made your final payment at the end of your agreement, ownership of the vehicle will automatically transfer to you and you’ll own the vehicle outright.

Who owns the car at the end of a Conditional Sale agreement? 

Once you’ve completed all monthly payments and paid the final instalment of your Conditional Sale finance agreement, you will own the vehicle. As such, Conditional Sale is an excellent option for spreading the cost of buying a car. If you’re not looking to own the vehicle, you may prefer the added flexibility of a leasing agreement like Personal Contract Hire. Or, you may prefer having multiple options at the end of your agreement like with Personal Contract Purchase.

Are there mileage limits with Conditional Sale?

There are no mileage limits with a Conditional Sale car finance agreement. This type of car finance can be suitable if you drive long distances regularly.

What is the difference between Conditional Sale and Personal Contract Purchase? 

Unlike Personal Contract Purchase, providing you make all monthly payments you’re guaranteed to own the vehicle at the end of a Conditional Sale agreement. Personal Contract Purchase also offers multiple options at the end of the agreement, allowing you to part-exchange or return your car should you decide to. 

How does a Conditional Sale agreement work?

We offer Conditional Sale agreements on both new and used vehicles across our brand network. Before entering into any finance agreement, you’ll speak to your local Retailer about the range of finance options available.

If you decide that Conditional Sale is the right option for you, you can begin the process with your chosen Retailer:

1. Pay an up-front deposit

When entering into an agreement, you will agree to your deposit along with your agreement term, which will determine your monthly payment. Once you’ve paid your deposit, and all relevant credit checks have been successfully approved, you’ll secure the finance agreement. You may also be able to part exchange your used car to cover part of this deposit. 

2. Make regular monthly payments

Drive away and pay for your vehicle in instalments. You’ll agree to monthly repayments that work for you and your budget. When defining your monthly costs, we’ll consider factors like your credit score and eligibility. We also consider affordability with income and outgoings, along with interest rates and the total cost of the vehicle, in a similar way to if you were getting a mortgage. 

3. Become the official owner of the car

With Conditional Sale, you can enjoy your vehicle straight away, but you won’t be the registered owner until you’ve completed all payments. Once your car finance agreement has ended legal ownership of the vehicle will be transferred to you.

Unlike PCP or PCH agreements, you won’t need to pay for any excess mileage or damage as you won’t hand the vehicle back.

Conditional Sale Car Finance for Business

We offer Conditional Sale for Business users. Rather than taking out a business loan for a company car, you may consider Conditional Sale as a financing alternative. To find out more about business car finance, visit your local Retailer.

Decide whether Conditional Sale finance is right for you

If you want a new car but can’t commit to a large financial outlay all at once, then a Conditional Sale agreement could be the right choice for you. Fixed monthly payments offer the benefit of budgeting and can pave an accessible way to become the legal owner of your new vehicle. Speak to your local Retailer to find out if Conditional Sale meets your needs.

Learn more about different finance products available in our Driver’s Hub: Buying a car on finance. Or try our Interactive Finance Product Tool to choose the ideal option for your lifestyle.