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Debt Advice Handbook 14th edition

Conditional sale agreement
A conditional sale agreement is a sale made on credit subject to conditions that give the client possession of the goods during the repayment period, but the goods only become the client’s property when the last payment has been made. Conditional sale agreements are mostly used for motor vehicles (and are very similar to hire purchase agreements – see here).
The legal position
Agreements are regulated credit agreements, provided the credit is for no more than £25,000 (if the agreement was made before 6 April 2008) or £15,000 (if made before 1 May 1998).1s8 CCA 1974 If the agreement was made on or after 6 April 2008, the agreement is regulated regardless of the amount, unless it is exempt (see here).
 
1     s8 CCA 1974 »
Special features
Conditional sale has a number of special features. These are the same as those for hire purchase (see here) and the two types of credit operate in the same way.
Checklist for action
Advisers should take the following action.
    Consider whether emergency action is necessary to prevent repossession of goods (see Chapter 8).
    Check liability, including the enforceability of the agreement under the Consumer Credit Act 1974.
    Check that the goods purchased were as described and of satisfactory quality (see here).
    Assist the client to choose a strategy from Chapter 8, if this is a priority debt, or Chapter 9 if the goods are not essential.