What is a Conditional Sales Contract?

A Conditional Sales Contract is a purchase agreement between the borrower and the lender. The lender will agree with the borrower, a fixed monthly payment which includes interest on the car. Some borrowers have the option to trade their car to reduce the overall fee, but that relies on the dealership. The dealership will more than likely complete the application form with you for the loan, and send it off to a lender or loan broker service.

Once the last payment has been made, you will automatically own the car outright. It is important to know, that you will not own the car until the entire agreed amount has been paid in full.

Unlike a HP sale, where you have the choice to pay extra administration fees to own the car, the car is automatically yours.

Advantages of a Conditional Sales Contract

Disadvantages of a Conditional Sales Contract

Other Car Finance options

Do you have any other questions regarding vehicle finance? We have put together some of our most common questions. Click on the links below.