Conditional Sale

Conditional Sale is a very similar product to the Hire Purchase but the customer commits to buying and owning the vehicle when they sign the credit agreement. There is no Option to Purchase fee and therefore no option to hand back the vehicle at the end of the agreement. This product is a simple way to finance your vehicle over a fixed period for a fixed monthly amount.

Who is the product suitable for?

Like Hire Purchase, the product is suitable for customers that are certain they would like to own the vehicle after they have made all necessary payments.

How does it work?

The customer will usually pay a deposit or part exchange their old vehicle as a deposit (or both) then make regular monthly repayments to repay the balance, it’s that simple. As your interest rate is fixed you’ll know exactly how much you’ll repay at the outset of the agreement. The loan is secured against your car. Once all the installments have been paid, the vehicle is yours.

What else do I need to know?

• The customer can voluntarily terminate their credit agreement before the final payment is due but as set out in the credit agreement, the customer will be required to either hand back the vehicle or pay at least half of the total amount owed.

• Repayment periods can vary from 12-60 months, the choice is yours.

• The car must not be more than 10 years old at the end of the agreement period and the minimum loan amount is £1,500.

• As a ‘regulated’ finance agreement, this product is not available to corporate entities, e.g. limited companies.