Conditional Sale is a popular form of car finance that is similar to Hire Purchase. It allows you to spread the cost of a vehicle over regular, fixed monthly payments. At the end of the agreement, the vehicle is entirely yours. One of the main differences between Conditional Sale and Hire Purchase is that Conditional Sale does not include an option to purchase fee at the end of the term. This makes it a straightforward and transparent way to finance a car.
When you enter into a Conditional Sale agreement, the only charges you’ll incur are the interest on the monthly payments as set out by the lender. The agreement offers flexibility, allowing you to customise the following aspects:
One of the significant advantages of a Conditional Sale agreement is the absence of mileage restrictions or charges for wear and tear. Unlike some other types of car finance, where exceeding a mileage limit or returning the car with damage could result in additional costs, Conditional Sale has no such penalties. Once you've made the final payment, the vehicle is yours outright, with no further fees.
Yes, you can end a Conditional Sale agreement early if your circumstances change, or if you simply want to upgrade your vehicle. The process is straightforward:
If your vehicle's trade-in value is higher than the settlement figure, you could either receive the difference as cashback or use it as a deposit towards your next vehicle finance agreement. This flexibility makes Conditional Sale an appealing option for many drivers who like to change their vehicles regularly.
The key difference between Conditional Sale and Hire Purchase lies in the end-of-term options. While both allow you to spread the cost of a vehicle over time, Conditional Sale does not require an option to purchase fee at the end of the agreement. This means that once you've made your final payment, the car is automatically yours.
No, there are no additional charges apart from the interest on your monthly payments. Once you've completed all the payments, you own the vehicle outright with no further fees or conditions.
Yes, you can end your Conditional Sale agreement early. To do this, you will need to request a settlement figure from your lender, which accounts for your remaining payments and a rebate for early repayment. Any amount your vehicle is worth over this figure can be used as a deposit on your next vehicle or given to you as cashback.
The above rates and monthly payments are an example only. The actual rate you will be offered by lenders could be lower or higher depending on your circumstances
Representative example: borrowing £6,500 over 5 years with a representative APR of 19.9%, an annual interest rate of 19.9% (Fixed) and a deposit of £0.00, the amount payable would be £166.07 per month, with a total cost of credit of £3,464.37 and a total amount payable of £9,964.37.
*Our lenders operate using an initial "soft search" which does not impact your credit score however, if you wish to proceed with the finance offered, the lender may carry out a "hard search" prior to sending you the finance documentation to sign.
Chelcie RoweExcellent customer service. Friend, helpful and patient. Knowledgeable and reassuring. This company helped when nobody else could in regards to finance, and Leon was exemplary.
Celin RoisinKirsty has been an absolute star the entire way - even when we had to change car last minute, she had it sorted and kept me feeling confident and secure throughout the entire process! I would recommend her to anyone and whoever gets her as an advisor is so lucky!!!!
Andrew DeanReally smooth process, the guys were great from start to finish and couldn't be happier with my new car. Legends!
Dyan WalkerExcellent service. Ali was professional, attentive and extremely thorough. He explained everything clearly and was able to close the deal for me quickly. Initial contact was made on Saturday and by Monday everything was completed. 5* service.
Martin BallHello well had never brought a car this way before but was helped though the whole thing by great staff found a great car and within 24hours had a new car 5⭐ customer service
Toni SeraphinWas not expecting to be looking for another car so soon... and this was at no faulty of Happy motors... They handled the issue with my first car rapidly. Damian, Leon on the day of the bad event went above and beyond to rectify the issue and dealt with the dealership. This meant that Kirsty had to put up with me once again to find another car... and bless her understanding and patience again for dealing with me haha! I eventually found my car, and again Kirsty and happy motors were superb, quick and efficient fro. Auto trader add to the car being at my door... superb. I recommend this team to anyone and will spread their name far and wide.. and sorry to say Kirsty... I will definitely be back again without doubt or hesitation.
John Henry Oluebube MadukaI recently had the pleasure of working with Kirsty at Happy Motor Finance to secure financing for my new car, and I am beyond impressed with the service I received. From the moment we connected, Kirsty was incredibly knowledgeable, patient, and attentive to my needs. They took the time to explain all the financing options available to me, ensuring that I could make an informed decision.What stood out the most was their commitment to finding the best possible Car, rates and terms that fit my financial situation. Kristy navigated through the paperwork with ease, making the entire process smooth and stress-free. A couple of times I was feed up and wanted to give up but Kirsty reassured me that this will workout in the end. Thanks to Kirsty's expertise and dedication, I am able to drive away in my dream car with a financing plan that works for me. I highly recommend Kirsty from Happy Motor Finance to anyone looking for a reliable and supportive finance company and representative. Thank you, Kirsty, for your outstanding service! I appreciate You😊
Kane MillerThank you so much for the help and it was fast, easy and straightforward thank you Ali for the help if I could give you a 10 star I would 🌟⭐️
Hashem AhmedAs a seller, the whole process was absolutely professional and swift. Would highly recommend and definitely work with again!
Alex Timmins-JonesVery helpful and a personal touch. 99% of companies just click a button and leave you alone if rejected. Happy actually worked hard to understand my circumstances and make efforts to match. All completed in a couple of days start to finish. They obviously have a unique selection of finance companies on hand to support. Very happy with happy
