Conditional Sale (CS)

Kia Cars at Stoneacre Durham

What is a Conditional Sale (CS) Finance?

Conditional Sale (CS) is a type of finance agreement where you own a car when you pay the last monthly payment.

During the agreement, you'll be a registered keeper of the vehicle, but the finance company remains the owner throughout the term until you've paid off the finance. 

It's a great option for financing both used and new cars, and at Stoneacre, we have a variety of lenders who offer conditional sale finance. 

Conditional Sale Agreement Explained

Below, we'll break down Conditional Sale - from the agreement length to the deposit.

  • Agreement Length

    You'll need to decide the agreement length (usually somewhere between 12 and 60 months). One thing to keep in mind is that if you choose longer-term the interest will also be higher, so if you can pick a shorter term to save money.

  • Fixed Interest Rate

    With Conditional Sale, the interest rate will remain fixed which means you will pay the same monthly payment amount over the years.

  • Deposit or Full Cost?

    The deposit is typically around 10%, which you will need to pay at the beginning of the agreement. You can also part-exchange your current car to contribute towards the deposit. 

    Another option is to instead cover the full car purchase price with the fixed monthly payments which are usually more expensive than the option with a deposit. 

Conditional Sale Pros and Cons

Cars on Finance - Stoneacre Newcastle


  • Flexible agreement options
  • You'll own the vehicle without having to pay a balloon payment at the end
  • CS finance is secured against a car rather than the borrower

Cars on Finance - SEAT


  • The car can be repossessed if you don't keep up with the monthly payments
  • The finance company is an owner of the vehicle until the last payment is paid
  • Monthly payments tend to be higher than with PCP and leasing

Conditional Sale FAQ

Can I cancel a Conditional Sale agreement?

If you want to end the Conditional Sale agreement, check whether you've paid at least half of the total sum - if that's the case, you can end the agreement without having to pay anything extra. However, if it's less than half, the lenders will ask you to pay the remaining amount until you've reached halfway. 

What are the differences between Conditional Sale and Hire Purchase?

The main difference is that you will own a car at the end of the Conditional Sale agreement without paying the balloon payment as is the case with Hire Purchase. Other than that, both these car finance types have almost identical conditions. 

Who is Conditional Sale available to?

Conditional Sale finance is available to a large majority of people, even if you had difficulties in the past or bad credit. You can quickly check your eligibility with a free finance check with no impact on your credit score.

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