CONDITIONAL SALE AGREEMENT

A significant number of the cars we arrange finance for are by way of something called a Conditional Sale Agreement.

If you buy a car using a Conditional Sale Agreement, you agree to pay for all or part of the car you have purchased in instalments. The vehicle you have acquired will belong to whoever has provided you with the finance, even though you’ve taken possession of the car.

Conditional Sale Agreements are simple and straightforward to understand  and hence their popularity.

The  key things you need to know about financing your car via a Conditional Sale Agreement are as follows;

1. You won’t own the car until you have paid  all the instalments. When you’ve done this, the car  transfers to your ownership. This is called “getting good title”.
2. Usually the supplying dealer will register the V5 in your own name (unless the Finance Company asks otherwise). The V5 confirms that your are the Registered Keeper of the car and NOT the legal owner.
3. Conditional Sale Agreements are regulated by the Consumer Credit Act 1974. Your agreement must be in writing and will  contain specific information about the Consumer Credit Act in order for it to be valid.
4. The Conditional Sales Agreements  that Fast Car Finance  arranges are always  with a separate Finance Company and the Finance Company  will purchase  the goods from the motor dealer on your behalf.
5. You will pay your monthly instalments directly  to the Finance Company, typically via Direct Debit
6. The total cost of borrowing the money, plus any other arrangement fees payable are detailed in the Conditional Sale Agreement when you sign it.
7. Monthly instalments are for a fixed amount each month.
8. You have the ability to settle the loan early and receive a rebate of interest charges.
9. Additional “over payments” can be made to your loan  over the duration of the agreement, an additional  handling fee may be payable for doing this. Any additional  fees will be detailed within the lenders terms and conditions that you sign.

If you are still unsure if a Conditional Sale Agreement is the right type of finance for you, please

Contact us

today for further information.

RECENT CONDITIONAL SALE AGREEMENT  CAR FINANCE