What is CS Car Finance?

CS car finance explained

When it comes to car finance, CS stands for conditional sale – which goes some way to explaining how it works. The sale of the car is dependent on the buyer meeting conditions of their CS agreement.

These agreements are also known (and possibly better known) as hire purchase (HP). Here’s how it works:

• The buyer makes monthly repayments towards the cost of their car, plus any pre-agreed interest charged by the lender.
• Repayments are made over a course of 1-5 years. A longer term means lower monthly payments, as you’ll be spreading the cost more. However, it also means more interest overall as you’re borrowing for longer.
• At the end of the term, you own the car. Unlike PCP, there is no option as to whether you do or don’t buy the car.
• That also means there’s no balloon payment – by the end of your term, the car will be fully paid off.
• An upfront payment isn’t always necessary, though it will reduce the amount left to pay each month – and, in turn, the amount of interest you pay.
• Because you will own the car at the end of the term, there are no charges for damage, excess mileage or depreciation.

Car finance made easy

At My Car Credit, we’re dedicated to making car finance clear, simple and accessible for drivers throughout the UK. That extends from our straightforward explanations of car finance options like CS finance to our hassle-free online application process. Calculate your car loan today to put us to the test.