Diverging captive PCP APRs for BEV and ICE underline the growing role of finance policy — not just pricing — in influencing retail demand.

When list price no longer tells the whole story

 

For years, one of the most commonly cited barriers to electric vehicle adoption has been affordability.

 

The argument is familiar: battery electric vehicles carry higher list prices than their petrol or hybrid equivalents, making them inaccessible to a large proportion of consumers.

 

On the surface, that assumption appears logical.

 

Yet analysing how vehicles actually reach customers tells a rather different story.

 

Using ASI's combined Promotional Activity, Transactional Pricing and PCP Finance datasets, we compared retail transactions for the Ford Puma Gen-E and Ford Puma mHEV during the first quarter of 2026.

 

Although the electric derivative entered the market with a list price almost £3,000 higher than the mild hybrid, that difference had disappeared by the point of sale. Once manufacturer support, retailer discounting and the UK Electric Car Grant are taken into account, the Gen-E achieved a lower average transaction price than its combustion-engined sibling. Representative PCP monthly payments followed the same pattern, demonstrating how today's affordability equation extends far beyond the advertised list price.

 

 

Looking beyond transaction price

 

Affordability, however, is only one part of the equation.

 

The supporting data reveals how Ford's retail strategy has been constructed.

 

Captive finance penetration remained high across both powertrains, suggesting a consistent finance-led retail approach regardless of propulsion technology. Meanwhile, the established mild hybrid continued to generate significantly higher trade-in participation, reflecting the Puma's mature customer base and long-standing owner loyalty.

 

The Gen-E appears to be attracting a different customer profile—one less reliant on replacing an existing vehicle and potentially more representative of conquest or first-time EV buyers.

 

Residual values tell another story

 

Perhaps the most interesting finding comes from the Guaranteed Future Values underpinning Ford's PCP offers.

 

Despite the long-held perception that electric vehicles suffer from weaker residual values, Ford Credit assigned the Gen-E a marginally stronger residual position than the mild hybrid, both as a proportion of list price and when measured against the average transaction price.

 

This is significant because residual values are one of the principal drivers of PCP affordability. Higher forecast values reduce depreciation over the agreement term, allowing manufacturers to support lower monthly payments while maintaining commercial viability.

 

The wider implication

 

This comparison should not be interpreted as evidence that every electric vehicle is now cheaper than its ICE equivalent.

 

It does, however, illustrate a broader shift in the UK retail market.

 

Increasingly, consumers purchase vehicles based on transaction prices, finance offers and monthly affordability, rather than headline list prices.

 

As the market continues to evolve, discussions around EV affordability should perhaps move beyond brochure prices and focus instead on the commercial reality of how vehicles are actually sold.