Conditional Sale Finance

What is Conditional Sale Finance?

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.

Charges and Conditions

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:

  • Deposit: You can choose the amount you'd like to put down as a deposit. This upfront payment can reduce your monthly payments and the total amount of interest you'll pay over the term of the agreement.
  • Term Length: You have the option to decide the duration of the agreement, typically ranging between 2 to 5 years. The length of the term will influence your monthly payment amounts.

No Hidden Costs

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.

Can I Change My Vehicle Early?

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:

  1. Request a Settlement Figure: Contact your lender to ask for a settlement figure. This figure represents the sum of your remaining payments, minus a rebate for early repayment of the loan.
  2. Get a Trade-in Value: Approach the dealer you intend to buy your new vehicle from and ask for a trade-in value for your current vehicle.

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.

FAQ

What is the difference between Conditional Sale and Hire Purchase?

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.

Are there any additional charges in Conditional Sale?

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.

Can I end a Conditional Sale agreement early?

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.

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Representative APR: 19.9% APR
We act as a credit broker, not a lender
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. This is an example only, lender fees may apply. The exact rate you will be offered will depend on your circumstances. All finance subject to status.
*After completing the application, lenders will perform a "soft search" that will not affect your credit score. Should you get an offer of finance and wish to proceed, the lender will then perform a "hard search" of your credit file. Finance acceptance is not guaranteed, please click the following link for more information: Initial Disclosure Document

Finance Calculator

Amount to Finance
Monthly Budget
-
£
+
-
£
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24
36
48
60

Approximate Monthly Payments

Excellent Credit
10.9% APR
108
Good Credit
17.9% APR
127
Fair Credit
24.9% APR
146
Poor Credit
39.9% APR
193

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.

*After completing the application, lenders will perform a "soft search" that will not affect your credit score. Should you get an offer of finance and wish to proceed, the lender will then perform a "hard search" of your credit file. Finance acceptance is not guaranteed, please click the following link for more information: Initial Disclosure Document

Approximate Amount You Could Borrow

Excellent Credit
10.9% APR
10.00
Good Credit
17.9% APR
10.00
Fair Credit
24.9% APR
10.00
Poor Credit
39.9% APR
10.00

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


Get Started
With no impact to your credit score*

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.

Why Choose Happy Motor Finance?

  • If you currently have a vehicle on finance, we can help you get your Settlement Figure
  • Most credit scores considered
  • Get finance on new or used motors
  • £0 deposit options
  • No arrangement fees
  • Get a decision in minutes
  • We check a wide panel of lenders

How Our Service Works

Apply
You apply in 60 seconds using our simple online application form - check your emails for updates
Compare
We search our panel of lenders to compare quotes and get you the best finance deal
Options
If approved, we will call you to explain your finance options and discuss your vehicle requirements
Vehicle
You’re welcome to find your own vehicle or we can help you find one, we carry out checks on the dealer and vehicle
Documents
We will tell you what documents you need to send us - you then receive the finance agreement to eSign
Drive
It’s time to collect your vehicle and drive away in as little as 48 hours!
Some of our trusted partners
Oodle - Car Finance Loan Lender
Marsh Car Finance - Motor Finance Broker
Advantage Finance - Car Finance Broker Partner
Lendable Car Finance - Motor Finance
Close Finance - Motor Finance Partners
First Response Car Finance Broker Partner
Company Name & Contact Details
Happy Motor Finance
Pennington House
16 Carolina Way
Salford Quays
Salford
M50 2ZY
0161 524 0582
Happy Motor Finance Limited is registered in England and Wales under company number: 14387669. Registered office address: Pennington House, 16 Carolina Way, Salford Quays, Salford, M50 2ZY

Happy Motor Finance Limited (FRN - 989250) is authorised and regulated by the Financial Conduct Authority. We act as a credit broker not a lender. We work with a specific panel of lenders to try to obtain you an approval. We receive a commission for introducing you to parties with whom we work with if you proceed with an acceptance. This commission is a fixed payment or fixed percentage of the amount you finance, but can vary by partner. This does not impact the rate you are provided. You will be provided full information before completing your finance agreement and you can request further information at any time. We do not charge a fee for our services. All finance is subject to status and income. Terms and conditions apply. Applicants must be 18 years or over. We are only able to offer finance products from these providers.

Happy Motor Finance Limited are registered with the Information Commissioners Office under registration number: ZB408604

VAT Number: 456 0212 21
Specialist Automotive Finance Approved
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