Conditional Sale, often referred to as Hire Purchase, is one of the most common ways to finance a new or used vehicle.
This is probably the most straight-forward and easy to understand method of vehicle financing.
Conditional Sale assumes that you want to eventually own the vehicle at the end of your finance term, so simply splits the total cost of the vehicle (minus your deposit) over the duration of your plan.
Once the last monthly payment has been made, the vehicle is yours.
| Personal Contract Purchase (PCP) | Conditional Sale | Personal Contract Hire | |
|---|---|---|---|
| New Cars |
✓ |
✓ |
✓ |
| Used Cars |
✓ |
✓ |
X |
| Upfront Payment | Optional |
Optional |
Required |
| Monthly Payments |
✓ |
✓ |
✓ |
| Damage Charges |
✓* |
X |
✓ |
| Excess Mileage Charges |
✓* |
X |
✓ |
| Depreciation Risk | X |
✓ |
X |
| Road Tax Included | X | X |
✓ |
| Vehicle Ownership |
Option to buy** |
Owned at the end of the term | No option to buy |
| Maintenance Package | X |
X |
✓† |
* Damage and excess mileage charges are only payable if the vehicle is handed back
** If you pay the Optional Final Payment, you will take ownership of the car at the end of the contract
† A maintenance package is available for an additional fee