How to Finance a Ford in the UK

Why People Finance a Ford

Ford remains one of the most popular car brands in the UK, synonymous with reliability, practicality, and value. Models like the Ford Fiesta and Focus are a common sight on British roads, while SUVs such as the Puma and Kuga appeal to families seeking space and versatility. Prices for a new Ford can range from around £18,000 for a Fiesta to over £35,000 for higher-spec Kuga models.

For many, financing a Ford makes practical sense. Rather than paying a lump sum upfront, buyers spread the cost over manageable monthly payments, preserving savings and cash flow. Ford drivers often opt for PCP (Personal Contract Purchase) or HP (Hire Purchase) agreements to tailor payments to their budget and lifestyle. Financing also opens the door to newer models with advanced features, making Ford ownership more accessible to a wider range of motorists.

Your Car Finance Options Explained

Understanding the finance options available is crucial to making an informed decision. Here are the main ways to finance a Ford in the UK:

PCP (Personal Contract Purchase)

• How it works: You pay an initial deposit, followed by fixed monthly payments over 2–4 years. At the end, you can either pay a final balloon payment to own the car, return it, or part-exchange for a new Ford.

• Pros: Lower monthly payments compared to HP. Flexibility at the end of the term.

• Cons: Mileage limits and fair wear policies apply. You don’t own the car unless you pay the final amount.

• Example: A Ford Focus on PCP could mean monthly payments of £250, with a balloon payment of £7,000 at contract end.

HP (Hire Purchase)

• How it works: After a deposit, you pay the remaining balance plus interest in equal monthly instalments. Once the final payment is made, the car is yours.

• Pros: Straightforward structure. You own the car at the end.

• Cons: Higher monthly payments than PCP. Less flexibility mid-contract.

• Example: The same Ford Focus on HP may have payments of £350 per month over four years, with no balloon payment.

Lease or PCH (Personal Contract Hire)

• How it works: You rent the Ford for a set period and mileage, then hand it back at the end. You never own the car.

• Pros: Low upfront costs, fixed payments, no depreciation worries.

• Cons: No option to purchase. Excess mileage charges.

• Example: Leasing a Ford Puma could cost £220 per month with a 10,000-mile annual limit.

Personal Loan

• How it works: You borrow money from a bank or lender to buy the Ford outright, then repay the loan monthly.

• Pros: Immediate ownership. No mileage restrictions.

• Cons: Interest rates vary. May require a strong credit profile.

Key takeaway: PCP deals often feature lower monthly payments but a larger final payment, while HP is simpler and leads to outright ownership. Leasing suits those who want a new car every few years.

How to Get the Best Deal on a Ford

Finding the best Ford car finance deals in the UK requires a blend of research, timing, and negotiation. Here are practical steps to secure value:

• Compare lenders and online brokers: Don’t limit yourself to dealer finance. Use online brokers like Kandoo to compare Ford PCP offers from multiple lenders. This helps ensure you’re not missing out on lower rates or better terms.

• Check your credit score: A strong credit profile can unlock lower interest rates. Use free UK services to review your credit file before applying.

• Negotiate dealer finance: Dealers may offer incentives such as deposit contributions or 0% APR on specific Ford models. Always ask if there’s flexibility on rates or extras.

• Deposit size tips: A larger deposit can reduce your monthly payments and overall interest. Consider saving up to put down at least 10–20% if possible.

• Timing matters: End-of-quarter or end-of-year periods often coincide with dealer targets and new plate releases, leading to discounted stock and better finance deals.

• Consider pre-registered and nearly new Fords: These vehicles can offer significant savings on the list price, with attractive finance packages.

Next Steps:

1. Search for “best Ford car finance deals UK.”

2. Compare Ford PCP offers and HP deals side by side.

3. Factor in total cost, not just monthly payments.

Eligibility & Credit Check Tips

Lenders assess several key factors when reviewing your Ford finance application:

• Income and affordability: Can you comfortably afford the monthly payments based on your income and outgoings?

• Employment status: Full-time, part-time, or self-employed applicants are considered, but stable employment is preferable.

• Credit file: Lenders check your credit history for missed payments, defaults, or County Court Judgments (CCJs). A clean file improves your chances, but some lenders specialise in bad credit car finance.

Even if you have bad credit, Kandoo can help match you with lenders who may still approve your application. Soft credit searches won’t affect your score, so you can explore options risk-free.

Tips to improve eligibility:

• Register on the electoral roll

• Settle outstanding debts

• Avoid multiple credit applications in a short period

Example Finance Scenarios

Let’s say you’re considering a 3-year-old Ford Fiesta valued at £14,000. Here’s a side-by-side comparison of typical finance options:

• PCP: Lower monthly payments, but a larger optional final payment if you want to keep the car.

• HP: Higher monthly payments, but you own the car outright at the end.

• Lease: No ownership, but competitive payments and included services.

Figures are illustrative and may vary with APR, deposit size, and credit profile.

Common Questions About Ford Finance

Can I get 0% APR on a Ford? Some Ford dealers offer 0% APR on selected models or during promotional events, usually requiring a significant deposit and strong credit. These deals are typically limited to new or nearly new vehicles.

Is it cheaper to lease or finance a Ford? Leasing usually results in lower monthly payments, but you never own the car and may incur charges for excess mileage or damage. Financing (via PCP or HP) costs more monthly but offers the option of ownership and flexibility at the end.

Can I get Ford finance with bad credit? Yes. Specialist lenders and brokers like Kandoo work with applicants who have less-than-perfect credit. Expect to pay higher interest rates, but flexible terms are available.

Can I refinance my current Ford? If your circumstances have changed, refinancing can lower your monthly payments or let you release some equity in your car. Contact your current lender or a broker to explore options.

What documents do I need for Ford finance? You’ll typically need proof of ID, proof of address, recent bank statements, and evidence of income (such as payslips or tax returns).

Can I settle my Ford finance early? Yes, but check for early settlement fees. With PCP and HP, you can request a settlement figure at any time.

How Kandoo Can Help

At Kandoo, we work with a panel of trusted UK lenders to help you find the best Ford finance deals—quickly, securely, and with no impact on your credit score. Whether you’re looking for the lowest PCP rates, flexible HP terms, or need support with bad credit, our team can guide you through your options.

Ready to take the next step? Compare Ford finance deals now →