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FORD OPTIONS AND FORD OPTIONS CASHPLAN FOR BUSINESS CUSTOMERS

 

  1. What is Ford Options?
  2. What is Ford Options Cashplan?
  3. Which finance plan is right for my business?
  4. Is my business eligible for Ford Options and Ford Options Cashplan?
  5. What mileage bands are available?
  6. Why is there a mileage restriction and what happens if I exceed it?
  7. Can I change my mileage band during my agreement?
  8. What are the minimum deposit requirements?
  9. What information will you need from me and my business?
  10. How long will it take to process my application?
  11. How much can I borrow?
  12. What options do I have at the end of my Ford Options or Ford Options Cashplan agreement?
  13. I'd like to part exchange my Ford Options vehicle.  What do I need to do?
  14. As a business customer, are there any VAT implications of handing back my vehicle before or at the end of an options agreement?
  15. What is the outcome of the VAT adjustment if I am a VAT registered customer?
  16. What if I want to know more about the VAT adjustment when handing back the vehicle?
  17. When is my Optional Final Payment due?
  18. What happens if I have not made a decision and my Optional Final Payment has become due?

What is Ford Options?

You can find out about how Ford Options works here

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What is Ford Options Cashplan?

You can find out about how Ford Options Cashplan works here

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Which finance plan is right for my business?

You can compare the range of finance plans available to business customers here.

The availability of tax and VAT benefits may vary subject to the facts and circumstances of individual cases and tax law is subject to change over time. Customers are therefore advised to seek professional advice with regard to taxation.

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Is my business eligible for Ford Options and Ford Options Cashplan?

Certain business types are excluded from Ford Options and Ford Options Cashplan.  If your business type is listed below then you may want to consider our Ford Acquire with balloon product.  Click here for more information

Business Types Excluded from Ford Options and Ford Options Cashplan

  • Fish transport; Sewerage; Waste Management
  • Mining and Quarrying; Chemical Transport Contractor; Road / Motorway Maintenance; Cement and Concrete
  • Taxi driver; commercial vehicle / Van Hire; Courier; Chauffeur Services; Driving Instructor

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What mileage bands are available ?

All cars plus Ranger & Tourneo Custom annual mileage bands are: 6,000, 9,000, 12,000, 15,000, 18,000, 24,000

All other Ford Commercial Vehicles annual mileage bands : 9,000, 12,000, 18,000, 24,000, 30,000, 36,000

Maximum total contract mileage cannot exceed 80,000 miles per annum (this is classed as heavy usage)

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Why is there a mileage restriction and what happens if I exceed it?

The annual mileage on your agreement was agreed as per your requirements at the start of the finance agreement.  Your Optional Final Payment is the anticipated future value of your vehicle assuming the mileage and condition is as agreed when you signed your agreement.  If you exceed this agreed mileage then you will incur the additional excess mileage charges stated on your agreement.

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Can I change my mileage band during my agreement?

No.  As your anticipated annual mileage forms part of the Optional Final Payment calculation it is not possible to amend this during the agreement.

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What are the minimum deposit requirements?

Deposit requirements may vary due to the current programme requirements, however, the full purchase VAT amount is required as the minimum deposit for all VAT registered customers on all Commercial vehicle finance plans

The maximum deposit for Ford Options is 35%

For information about Advance Payments on Ford Options Cashplan click here

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What information will you need from me and my business?

This depends on the sort of business you have, as well as the vehicle you choose. Please contact your Ford Dealer or Transit Centre to discuss our requirements.

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How long will it take to process my application?

Your Dealer will be able to keep you updated on the status of your application, and give you a rough timeframe based on the individual circumstance of your deal.

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How much can I borrow?

This depends on a case by case basis. However, as there are normally no minimum deposits, it can be possible to borrow 100% of the vehicle price (excluding VAT for VAT registered customers). Contact your Ford Dealer or Transit Centre if you wish to know more information.

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What options do I have at the end of my Ford Options or Ford Options Cashplan agreement?

At the end of your agreement you have three options:

  • End of contract Option 1) Renew : Choose another vehicle

If you would like to renew your Ford you can trade your current vehicle in at your Ford Dealer or Transit Centre or sell it privately if you prefer.  You must settle your account, and then any excess value over the Optional Final Payment can be used a deposit towards your new Ford.

  • End of contract Option 2) Return : Hand the vehicle back

If you would like to return your vehicle, please contact your Ford Dealer or Transit Centre who will be able to advise you of the next steps to take.

A vehicle inspection will need to be completed and as long as your vehicle meets the necessary wear and tear standards, is within agreed contracted mileage, and your account is up to date, there will be nothing further to pay.

Additional charges will be incurred if you exceed the contracted mileage or if your commercial vehicle does not meet the industry wear and tear standards.

To avoid incurring charges we recommend that you use the Guide to your Ford Options Agreement located here (PDF 4.2MB).


You must return the relevant vehicle documentation, including the MOT certificate if the vehicle is at least 3 years old and the V5 Vehicle Registration Document, also known as the logbook.  You may incur charges if either of these documents are not returned. Our fair wear and standards and charges are detailed here (PDF 75 KB)

  • End of contract Option 3) Retain : Keep the vehicle 

If you decide you want to keep the vehicle, you just need to pay the Optional Final Payment plus the Purchase Fee and it's yours.

To make this payment by Debit or Credit card, or to discuss other options of how to settle your account then contact us on 03457 125490*.

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I'd like to part exchange my Ford Options vehicle.  What do I need to do?

If you decide to part exchange your vehicle, you should act to ensure that you are able to take delivery of your new Ford by the final Ford Options date - this can be found on page one of your Ford Options Finance Agreement.  

You can trade your current vehicle in at your Ford dealer or Transit Centre Click here to find the nearest

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As a business customer, are there any VAT implications of handing back my vehicle before or at the end of an options agreement?

Where a Ford Options agreement vehicle is handed back to Ford Credit, Ford Credit is required to adjust down the sale VAT originally paid. Ford Credit will issue a VAT credit note to a you as a business customer for the VAT being credited so that you can process this VAT credit note in your business records and adjust the level of VAT charged to you. This does not apply if you have Part-Exchanged the vehicle or have paid off the Optional Final Payment.

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What is the outcome of the VAT adjustment if I am a VAT registered customer?

Where your business is VAT registered and you can or have recovered the VAT on the initial purchase of the vehicle, then the end VAT outcome should net out to no change (while you will be required to pay back to HMRC the credited VAT, Ford will also credit you an identical amount).

Please note: FCE Bank plc may use this VAT credit to first set off against any arrears or applicable hand back charges (e.g. mileage charges) due from you.

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What if I want to know more about the VAT adjustment when handing back the vehicle?

The above is for general information only – we are unable to advise customers on their tax affairs.  If you need advice, please contact your usual advisers.   

Explanatory information for you or your advisers:

Please see “Policy paper Revenue and Customs Brief 6 (2019): changes in accounting for VAT after prices are altered”, Published 17 July 2019. This sets out HMRC guidance.

The legislative references include Regulation 38 of the VAT Regulations 1995

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When is my Optional Final Payment due?

Your Optional Final Payment is due 30 days after your last regular instalment has been paid.

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What happens if I have not made a decision and my Optional Final Payment has become due?

Please contact us on 03457 125490 immediately to discuss with one of our Account Services team.

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