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Simply explained
This short video provides a simple explanation of Conditional Sale and how it works.
Why it could be right for you
- Budget with confidence, knowing the rate of interest we charge, and your monthly payments, stay the same.
- Own the vehicle at the end of the agreement.
How does it work?
To meet your needs and budget, set up how long the agreement runs for and the deposit (if any) you put down.
Fixed interest rate. So, after paying any deposit, you pay the same amount each month for the whole agreement. This covers the amount you borrowed and interest.
If you wish to put down a deposit, you have three options:
1. Trade in your existing vehicle (part exchange) and put this towards the deposit.
2. Put down a cash deposit.
3. Trade in your vehicle (part exchange) and add a cash contribution towards the deposit.
At the end of the agreement, you have one option: To keep the vehicle.
More you should know
- The smaller the deposit you put down, the more chance you have of going into negative equity. This is when the value of the vehicle becomes less than the balance you owe on the loan you secured against it.
- The agreement is secured against the vehicle. If you miss your repayments, we may need to take steps to recover the outstanding balance, which could include repossession of the vehicle. Ownership of the vehicle will be transferred to you once all payments under the agreement have been completed.
This type of agreement is covered by the Consumer Credit Act 1974, which means:
- You can pay off lump sum amounts during the agreement
- You can settle the agreement early by repaying the required amount
- You have the right to terminate the agreement early through Voluntary Termination.