WHAT IS CONDITIONAL SALE?
Conditional Sale is the typical option to purchase your vehicle in small instalments rather than all at once. You can use a low deposit to purchase the car, and your monthly deposits are fixed throughout the term of the contract. After you have made your final payment, ownership will automatically pass directly to you.
WHy choose conditional sale?
- Spread payments for the vehicle for up to 60 months on cars and 72 months on commercial vehicles
- You own the car after you make the final payment
- No limits on the miles you can drive, therefore no mileage excess
See our overview video below explaining what Conditional Sale is:
conditional sale for business users
Conditional Sale (CS) is also available for business users. The loan period is fixed up to 6 years and the finance agreement is secured against the vehicle being purchased.
*the loan period is a maximum of 5 years for cars and 6 years for commercial vehicles.
Why choose conditional sale for business?
- You can settle the agreement at any time and use capital allowances to offset against taxable profits.
- Annual Investment Allowance (AIA) is a separate allowance available on commercial vehicles (CVs) allowing the cost to be offset against taxable profits.
- Finance charges are allowable against tax, which reduces your tax liability.
Please seek independent tax advice to find out which finance product is right for your business.
What happens at the end of my agreement?
After you have made your final payment you will be the owner of your car. You do not need to make any additional steps, ownership will automatically transfer to you.