Ford Acquire – Hire Purchase (HP)

A hire purchase agreement is the method of funding a vehicle purchase which gives you the option to own the vehicle at the end of the agreement. These contracts are quick to arrange, they are normally fixed cost, meaning that the APR (annual percentage rate) is set before the contract begins. The loan period is also fixed generally from 12 to 60 months and the finance agreement is secured against the vehicle being purchased, which means the lenders can be flexible in the terms and conditions they offer.


Ford Options – Personal Contract Purchase (PCP)

PCP is the method of funding a vehicle purchase, similar to HP in that there's an option to pay a deposit, a fixed interest rate, and monthly repayments over a choice of lending terms, which are usually between 12 and 48 months, with an agreed mileage limit a year. The key difference is that the value of the vehicle at the end of the agreement is calculated at the start of the agreement and this value is deferred (Optional Final Payment), and you have the option at the end to either;

Renew
Choose another car

Your chance to drive another new Ford Car. You can trade your old car in or sell it privately. Once you’ve fully settled your account (including the Optional Final Payment) any money left may be used as deposit for your new Ford Car.

Return
Hand the car back

You’ll have nothing further to pay, providing the car is in good condition and the agreed mileage hasn’t been exceeded.

Retain
Keep the car

If you decide to keep the car, assuming all payments have been made, you just need to pay the optional final payment plus the purchase fee and it’s yours to drive away.

Finance subject to status. Guarantees may be required. Freepost Ford Credit.

Cash Plan – Personal Contract Purchase (PCP)

Cash Plan is a type of PCP method of funding a vehicle purchase, similar to options in that there's an option to pay a deposit, a fixed interest rate, an agreed mileage limit a year, but you pay an advance payment and then no monthly payments until your Optional Final Payment is due at the end of the agreement.

Your advance payment will depend on the following:

  • Agreement length – choose from 24 or 36 months
  • Your anticipated annual mileage
  • The Ford vehicle you want to drive
The Advance Payment is the difference between the purchase price of the car and the Optional Final Payment and includes interest charges and the Finance Facility Fee.

At the end of the agreement you then have the same options as you did with Options.