What is conditional sale?

Help & Advice

A conditional sale arrangement is like hire purchase except you commit to buying the car from the start. This makes it automatically yours once you’ve paid the final instalment.

You choose the car and Zuto will arrange for the payment of the vehicle. You then hire the car from the finance company, taking responsibility for it and making monthly payments until you have paid the total amount owed. At the end of the repayment period, you automatically take ownership of the car.

Key details: Conditional Sale agreements offer fixed monthly repayments over an agreed period with you and the lender, typically between 12-60 months. You don’t have to offer a deposit but it can increase your chances of approval with the lender. A deposit should ideally be 10% of the total cost of the vehicle however, even a sum of £500 will open up more lending options to you.

Find out about more about no deposit car finance.