It claimed PCPs currently account for 30 per cent of all registrations but some dealerships are achieving 70 per cent of sales with certain models.

Roelant de Waard, Ford of Britain's managing director and chairman, said the move would yield significant results.

“I am a fan of PCPs and we see these increasing. The scheme, introduced on 1 April, will give our dealers a better sales proposition for their customers with more equity in the car and stronger residuals as stock is turned over sooner,” he said.

With the current economic climate expected to affect retail trends, de Waard was confident the brand had the backing to provide its own finance to customers who may otherwise find it difficult to fund a new car.

“I think this move to a shorter cycle and lower APR will help us maintain good sales this year along with the new model line up we are introducing."

After the debut of the Kuga this summer, the autumn will see the all new Fiesta and towards the end of the year the new Ka will appear, which will then leave the Fusion as the oldest model in the range.

Latest figures show that Ford new car sales were up 1.4 per cent in the first quarter this year.