Conditional Sale
Learn more about Conditional Sale finance.
Rates from 9.9% APR. Representative Example: Hire Purchase agreement, based on a vehicle with a cash price of £8,000.00, with £0 deposit, borrowing £8,000.00 over 5-years with a representative APR of 25.4% fixed, the amount payable would be £224.83 per month, with an option to purchase fee of £10.00, a total cost of credit of £5,489.80, and a total amount repayable of £13,489.80. Jigsaw Finance Limited t/a My Car Funder is a credit broker, not a lender.
About CS (Conditional Sale)
Conditional Sale (CS) agreements are similar to Hire Purchase (HP) agreements.
These are different from ordinary credit agreements because under Conditional Sale and Hire Purchase agreements you do not own the car until you have paid off the agreement.
The key difference between a Conditional Sale and Hire Purchase agreement is that you will become the legal owner of the vehicle once all repayments have been made to the lender. This is different compared to HP, because with a HP agreement there is an option to purchase fee at the end of the contract that needs to be paid before you can legally own the vehicle.
The finance is secured against the vehicle. The agreement can be settled at any time by paying the total balance outstanding to the lender. At the end of the agreement, once all repayments have been made, title to the vehicle passes to you.
Advantages
There is no option to purchase fee at the end of the agreement. You would own the car once all the repayments have been made.
Flexible terms from 1-5 years (the longer the term, the more interest you will pay).
There are no mileage restrictions under a Conditional Sale. Some lenders may impose certain restrictions on the use, location and condition of the vehicle.
Disadvantages
Monthly payments are more expensive compared to Personal Contract Purchase and Leasing deals.
You don't own the car until you make the final payment.
You cannot sell or modify the vehicle during the course of the agreement without the finance company's permission.
If you fail to keep up all your repayments, the finance company can repossess the car.