Conditional Sale Car Finance Claims — Are You Eligible?
Scheme status (updated 5 August 2026): parts of the FCA motor finance redress scheme are temporarily suspended while the Upper Tribunal considers legal challenges. Lenders do not currently have to calculate or pay compensation under the scheme, the original decision and payment dates no longer apply, and no payment under the scheme is guaranteed. If the scheme proceeds, first payments are expected in 2027 at the earliest. Any dates mentioned below were set before the suspension.
Conditional sale is a type of car finance agreement that works almost identically to hire purchase — and it is fully covered by the FCA’s PS26/3 motor finance redress scheme. If you are unsure whether your agreement was conditional sale, hire purchase or PCP, this guide explains the differences and confirms your eligibility.
What Is a Conditional Sale Agreement?
A conditional sale agreement is a regulated credit agreement where you purchase a vehicle in fixed monthly instalments. The ‘condition’ is that ownership does not transfer to you until all instalments have been paid — at which point it transfers automatically with no additional payment required. This is effectively identical to hire purchase. The main technical distinction is that under HP there is technically a nominal option-to-purchase fee (usually £1-£10) at the end, whereas under conditional sale ownership transfers automatically. In practice both products work the same way and the FCA treats them identically under PS26/3.
How to Tell If You Had a Conditional Sale Agreement
Your original finance documents will state ‘Conditional Sale’ or ‘CS’ at the top. Other indicators: fixed monthly payments with no large final balloon payment, you own the car at the end without any additional payment, no mileage restrictions, and the agreement was described as a ‘credit sale’ or ‘instalment sale’ — equivalent terms.
If you are unsure, check your credit report or use Claims Bible’s free agreement finder. See: Claiming Without Paperwork
Is Conditional Sale Covered by the FCA Scheme?
Yes — fully. The PS26/3 scheme document explicitly covers ‘HP and conditional sale agreements’ throughout. Your eligibility criteria are identical to HP: agreement between 6 April 2007 and 1 November 2024, arranged through a dealer or broker in your personal name, for personal use, with the dealer receiving an undisclosed commission.
How Much Could You Receive?
The FCA-confirmed average payout is £829 per eligible agreement plus compensatory interest. Conditional sale agreements are calculated using exactly the same Hybrid Remedy as HP and PCP. Use our car finance claims calculator to estimate your specific payout.
Conditional Sale vs Hire Purchase — Is There Any Difference for Claims?
No practical difference. For PS26/3 purposes conditional sale and hire purchase are treated as the same product type. The same commission practices applied to both and the same calculation methodology applies. If you had both a conditional sale and a hire purchase agreement at different times, each is a separate eligible agreement and a separate potential payout.
Frequently Asked Questions
My agreement says ‘credit sale’ not ‘conditional sale’. Is it the same?
Yes. Credit sale, instalment sale and conditional sale are used interchangeably by different lenders for the same arrangement.
I had a conditional sale through a car supermarket rather than a franchised dealer. Does that matter?
No. The scheme covers agreements arranged through any dealer or broker including independent car supermarkets and used car dealers.
My conditional sale was settled early. Can I still claim?
Yes. Early settlement reduces the total interest paid but does not eliminate your claim. See: Claiming After Early Settlement
Related Guides
Hire Purchase Car Finance Claims
Multiple Car Finance Agreements
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Think You May Have a Motor Finance Claim?
The FCA estimates average compensation of around £830 per eligible agreement, but eligibility and payment amounts vary. Some customers may receive nothing. Complaints about agreements started from 1 April 2014 should be submitted by 30 June 2026 to be considered under the earlier timetable. Different dates apply to older agreements. The scheme is currently subject to legal challenge, so dates and payment timings may change.
