What is CS finance?

CS finance, also known as a Conditional Sale agreement, is a type of vehicle finance that means you will automatically own the car once you’ve made your final payment.

What is CS finance?

CS finance, also known as a Conditional Sale agreement, is a type of vehicle finance that means you will automatically own the car once you’ve made your final payment.

CS finance stands for Conditional Sale agreement. It’s the type of finance that we offer at Moneybarn, and it means that you will only legally own your vehicle once you’ve made your final payment. You will however be the registered keeper of your vehicle throughout your Conditional Sale agreement, until you have made your final payment to the CS car finance company, and essentially bought it from them.

Instead, you pay through monthly payments over a set term, that are deemed affordable to you. CS finance is a great option when considering buying a new or second-hand car, as the rate of interest is fixed through the duration of the agreement. As soon as you have made your final monthly payment then the CS car finance company will transfer ownership of the car over to you.

CS finance stands for Conditional Sale agreement. It’s the type of finance that we offer at Moneybarn, and it means that you will only legally own your vehicle once you’ve made your final payment. You will however be the registered keeper of your vehicle throughout your Conditional Sale agreement, until you have made your final payment to the CS car finance company, and essentially bought it from them.

Instead, you pay through monthly payments over a set term, that are deemed affordable to you. CS finance is a great option when considering buying a new or second-hand car, as the rate of interest is fixed through the duration of the agreement. As soon as you have made your final monthly payment then the CS car finance company will transfer ownership of the car over to you.

How does CS finance work?

How does CS finance work?

CS finance, is really quite simple if you break it down. Here’s what you need to know in more detail:

Do you need a deposit? – You might need a deposit, however it is possible to get CS car finance without a deposit. It depends on a number of personal factors including your credit score.

What agreement length can you have? – The agreement length may vary depending on the finance company you choose. Some finance companies offer CS finance between 12 and 60 months. We offer agreement terms between 24 and 60 months. If you’d like to understand how the agreement length can affect what your monthly payments are, then try out our car finance calculator.

How often do you pay back CS finance? – A Conditional Sale agreement is paid back in monthly instalments, over the number of months, or term length, you agreed to at the start of your agreement. You will not own the vehicle until you make your last payment, until then you will be only the registered keeper of the car.

Conditional Sale car diagram

CS finance, is really quite simple if you break it down. Here’s what you need to know in more detail:

Do you need a deposit? – You might need a deposit, however it is possible to get CS car finance without a deposit. It depends on a number of personal factors including your credit score.

What agreement length can you have? – The agreement length may vary depending on the finance company you choose. Some finance companies offer CS finance between 12 and 60 months. We offer agreement terms between 24 and 60 months. If you’d like to understand how the agreement length can affect what your monthly payments are, then try out our car finance calculator.

How often do you pay back CS finance? – A Conditional Sale agreement is paid back in monthly instalments, over the number of months, or term length, you agreed to at the start of your agreement. You will not own the vehicle until you make your last payment, until then you will be only the registered keeper of the car.

Conditional Sale car diagram

Does the interest rate change? – With CS finance the interest rate is fixed. This means that your monthly payments will remain the same for the duration of the agreement.

When will you own the car? – You will own the car as soon as you have made your final monthly payment. Once this has been paid the CS finance company will transfer the ownership of the car into your name.

If you like the sound of CS finance, then you can use our car finance calculator to show you how our Conditional Sale agreement would work for you, and the term and loan amount you are wanting. You can also speak with one of our friendly Direct Sales Team who can walk you through what a loan might look like for you. 

If you are still unsure if CS finance is for you, then don’t worry, as there are many different types of car finance available that may suit what you are after more. 

Does the interest rate change? – With CS finance the interest rate is fixed. This means that your monthly payments will remain the same for the duration of the agreement.

When will you own the car? – You will own the car as soon as you have made your final monthly payment. Once this has been paid the CS finance company will transfer the ownership of the car into your name.

If you like the sound of CS finance, then you can use our car finance calculator to show you how our Conditional Sale agreement would work for you, and the term and loan amount you are wanting. You can also speak with one of our friendly Direct Sales Team who can walk you through what a loan might look like for you. 

If you are still unsure if CS finance is for you, then don’t worry, as there are many different types of car finance available that may suit what you are after more. 

What your CS car finance could look like

Summary

  • Monthly payment: £000.00
  • Total to repay: £00,000.00
  • Calculated APR: 00.0%

Representative 33.5% APR

What your CS car finance could look like

  • Monthly payment: £000.00
  • Total to repay: £00,000.00
  • Calculated APR: 00.0%

Representative 33.5% APR

Is CS finance right for me?

As specialists in offering bad credit finance, we can help people with CCJ’s and IVAs to get the vehicle finance they need. That is one advantage of a CS agreement with Moneybarn.

Other advantages and disadvantages of CS finance include:

Is CS finance right for me?

As specialists in offering bad credit finance, we can help people with CCJ’s and IVAs to get the vehicle finance they need. That is one advantage of a CS agreement with Moneybarn.

Other advantages and disadvantages of CS finance include:

Advantages of CS

  • Low/no deposit at the beginning of your agreement
  • You will automatically own the vehicle at the end of the agreement. There is no balloon payment.
  • CS finance is against the car and not you as a person. Meaning if you are unable to make the vehicle finance payments you can give the car back to contribute to the money owed to the lender.
  • The interest rate is fixed – this means that you know exactly what you are expected to pay back every month

Disadvantages of CS

  • Monthly payments can be higher than other types of vehicle finance like PCP or leasing. However, you won’t automatically own the vehicle at the end of the other types of agreements.
  • You won’t own the car until you make the final payment
  • You can’t sell or modify the car over the Conditional Sale agreement term without the lenders permission
  • Less choice of what to do at the end of the agreement compared to other car finance choices i.e. balloon payment or give it back.

Advantages of CS

  • Low/no deposit at the beginning of your agreement
  • You will automatically own the vehicle at the end of the agreement. There is no balloon payment.
  • CS finance is against the car and not you as a person. Meaning if you are unable to make the vehicle finance payments you can give the car back to contribute to the money owed to the lender.
  • The interest rate is fixed – this means that you know exactly what you are expected to pay back every month

Disadvantages of CS

  • Monthly payments can be higher than other types of vehicle finance like PCP or leasing. However, you won’t automatically own the vehicle at the end of the other types of agreements.
  • You won’t own the car until you make the final payment
  • You can’t sell or modify the car over the Conditional Sale agreement term without the lenders permission
  • Less choice of what to do at the end of the agreement compared to other car finance choices i.e. balloon payment or give it back.

In summary, if you don’t have enough money to buy a car outright and you want to keep the car for a long period of time then CS finance is a good choice for you. If you are wanting to upgrade your car every couple of years and don’t mind always having a car of finance, then a PCP deal is more of what you are looking for.

In summary, if you don’t have enough money to buy a car outright and you want to keep the car for a long period of time then CS finance is a good choice for you. If you are wanting to upgrade your car every couple of years and don’t mind always having a car of finance, then a PCP deal is more of what you are looking for.

How can I apply for CS car finance?

To get CS finance with us you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 21 and 70
  • A full valid UK driving licence
  • 2 consecutive months of payslips or bank statements

If you have a car in mind, then make sure it fits within our lending criteria. But if you don’t, no need to worry! We can help guide you through the process.

How can I apply for CS car finance?

To get CS finance with us you’ll need:

  • Monthly earnings over £1,000 (after tax)
  • To be aged between 21 and 70
  • A full valid UK driving licence
  • 2 consecutive months of payslips or bank statements

If you have a car in mind, then make sure it fits within our lending criteria. But if you don’t, no need to worry! We can help guide you through the process.

FAQs about Conditional Sale car finance

FAQs about Conditional Sale car finance

At Moneybarn, anyone aged 21 – 70 can get a CS car finance agreement, subject to their status and affordability. They will just need to make sure that the car, van, or motorbike they want matches our lending criteria.

Conditional Sale (CS) and Hire Purchase (HP) are very similar types of vehicle finance. They both could, but not always, require a deposit and you pay in monthly instalments to pay off the value of the car. Both are a loan that is secured against the vehicle.

All that differs is that CS finance has no ‘option to purchase fee’ at the end, which means as soon as you have made your final payment then you will be the legal owner of the car. Whereas HP finance will ask you for an ‘option to purchase fee’, which will vary depending on your HP agreement, to purchase the vehicle and make you the legal owner.

You can voluntarily terminate your CS finance agreement in writing and return the vehicle at any time. This is good to know should you no longer be able to afford the repayments.

If you end your agreement less than halfway through by voluntary termination, you will need to pay 50% of the total agreement amount (plus any arrears or charges where applicable). As part of voluntary termination, you are required to return the vehicle.

If a customer wants to end their agreement through an early settlement, they will need to pay the remaining capital. Contact your finance lender to get a full breakdown of what your early settlement figure could look like. 

No, not until you have finished repaying all your payments as you do not own the car until then. Once you have made your final payment and the lender has notified you that you are now the legal owner, you are able to make legal modifications to the car.

A CS agreement is extremely similar to Hire Purchase. The only main difference is that a HP agreement will ask for a ‘Optional Purchase Fee’ at the end of your monthly payments to allow you to own the car legally. This is often between £100-£200 but can be more. Whereas a CS agreement allows you to own the car automatically after you’ve made all your monthly repayments.

A Conditional Sales agreement is a secured loan. This means that the loan itself is secured against the vehicle. So if you stopped paying for any reason then the lender is able to take the vehicle back to recoup any costs.

There are not many differences between CS and HP finance, but there is one main difference. With CS finance you automatically become the legal owner of the car once you’ve made your final payment, but HP finance will ask you to pay an ‘Optional Purchase Fee’ to own the vehicle at the end of the agreement. This is also known as a balloon payment that is often somewhere between £100- £200.

At Moneybarn, anyone aged 21 – 70 can get a CS car finance agreement, subject to their status and affordability. They will just need to make sure that the car, van, or motorbike they want matches our lending criteria.

Conditional Sale (CS) and Hire Purchase (HP) are very similar types of vehicle finance. They both could, but not always, require a deposit and you pay in monthly instalments to pay off the value of the car. Both are a loan that is secured against the vehicle.

All that differs is that CS finance has no ‘option to purchase fee’ at the end, which means as soon as you have made your final payment then you will be the legal owner of the car. Whereas HP finance will ask you for an ‘option to purchase fee’, which will vary depending on your HP agreement, to purchase the vehicle and make you the legal owner.

You can voluntarily terminate your CS finance agreement in writing and return the vehicle at any time. This is good to know should you no longer be able to afford the repayments.

If you end your agreement less than halfway through by voluntary termination, you will need to pay 50% of the total agreement amount (plus any arrears or charges where applicable). As part of voluntary termination, you are required to return the vehicle.

If a customer wants to end their agreement through an early settlement, they will need to pay the remaining capital. Contact your finance lender to get a full breakdown of what your early settlement figure could look like. 

No, not until you have finished repaying all your payments as you do not own the car until then. Once you have made your final payment and the lender has notified you that you are now the legal owner, you are able to make legal modifications to the car.

A CS agreement is extremely similar to Hire Purchase. The only main difference is that a HP agreement will ask for a ‘Optional Purchase Fee’ at the end of your monthly payments to allow you to own the car legally. This is often between £100-£200 but can be more. Whereas a CS agreement allows you to own the car automatically after you’ve made all your monthly repayments.

A Conditional Sales agreement is a secured loan. This means that the loan itself is secured against the vehicle. So if you stopped paying for any reason then the lender is able to take the vehicle back to recoup any costs.

There are not many differences between CS and HP finance, but there is one main difference. With CS finance you automatically become the legal owner of the car once you’ve made your final payment, but HP finance will ask you to pay an ‘Optional Purchase Fee’ to own the vehicle at the end of the agreement. This is also known as a balloon payment that is often somewhere between £100- £200.

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