What is a Conditional Sale agreement?

Check your used car to verify if it has a leftover conditional sale

Understanding Conditional Sale Agreement

Knowing what is a conditional sale agreement can help you buy your used car easily, Conditional Sale, is often related to Hire Purchase, and is also one of the most common ways to finance a new or used vehicle, in terms of vehicle financing it is a very simple method to obtain.


It is presumed that vehicle will be owned by the end of finance term, the vehicle’s total cost (minus your deposit) is split and spread out as monthly installments over the plan duration. The vehicle can be owned after the last monthly installment has been paid. It gives certainty of a fixed interest rate, fixed monthly payments throughout the term. The initial deposit and payment period can be restructured to better meet your budget and the time duration you keep the car. It is best to take a vehicle finance check before you buy a used car.


You can also trade in your existing car and put that towards the initial deposit, or use a cash deposit.

How does conditional sale work?

  • The conditional sale agreement will be structured by your dealer to meet the individual requirements based on the car, total duration required for repayment, available deposit and your monthly budget.

  • Once initial deposit is paid, regular monthly payments are remitted to cover the amount borrowed including interest and fees.

  • Since interest rate is fixed, you’ll know exactly how much you pay throughout the term

  • Once the final payment has been made, the car is yours.
what is a conditional sale agreement

Why go for a Conditional Sale?

Learn what is a conditional sale agreement and the benefits that you can get, while sticking to your monthly budget. A conditional sale gets you closer to the car you want to purchase while keeping your expenses at a limit. Check if the used car you are buying has unpaid finance or not.


Check outstanding finance of a car to know more about the financial status of your car. Buying a used car is a long process, but if you get the things done right, then you can save a lot in the long run. Get an outstanding finance check to know more about your used car’s financial status.

Features and benefits of a conditional sale

A guaranteed and fixed monthly payment ensures that you don’t cross your budget while keeping a car, it is an agreement covered by “Consumer Credit Act 1974”, which entails consumer benefits stating, lump sum amounts can be paid during the agreement term, and agreement can be settled early by paying the required amount.

What happens if I sell my car with finance outstanding ?

It is illegal to sell a car with outstanding finance; if you have been scammed into buying a car with outstanding finance, file a complaint at the courthouse and demand for your consumer rights protection. It is best to check if a car has finance before getting involved in such legal hassles. Read more: What happens if I sell my car with finance outstanding?


Understanding what is a conditional sale agreement can benefit you during financing your vehicle.

Want to know every little detail about your used car?

It is common knowledge that we must prepare before we invest, investing in a used car requires due diligence and it can be easily backed up by a uk vehicle check which you could use to compare with cars and if the car that you have searched for is actually worth spending on or not.


Know more about your used car ranging from MOT details, tax dues, vehicle specifications, outstanding finance, written off status, stolen status and a whole lot more. Knowing what is a conditional sale agreement among all this information is only a small step towards learning about your used car.

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