Paragon extends battery electric vehicle financing to cover LCVs

Paragon Motor Finance has expanded its battery electric vehicle (BEV) finance offer to include light commercial vehicles.

Finance is offered on hire purchase and lease purchase agreements, with loans available to both consumers and businesses through intermediaries.

The UK Government has set the requirement for all new vehicles to have significant zero emissions capability by 2030, before becoming fully emission-free from 2035.

Paragon is continuing to expand its product range in the BEV market with lending criteria that aims to support and encourage customers to move away from Internal Combustion Engine vehicles.

Although still dominated by diesel engines, new LCV registrations have increased strongly this year, resulting in a growing used market. Society of Motor Manufacturers and Traders (SMMT) data showed a 60% increase in new LCV registrations in the six months to the end of June, compared to the same period last year, representing 8,100 vehicles.

The launch follows the debut of Paragon’s BEV finance for cars at the end of last year. Paragon has also enhanced its BEV offering for this segment of the market.

The changes include increased residual values ​​up to 90% on cars from 85% on non-regulated agreements and no maximum age of vehicle at loan initiation. The maximum age at the end of the term remains at 8 years

Julian Rance, Paragon Motor Finance managing director, said: “Our brokers, dealers and customers have highlighted the desire for an expanded electric vehicle offering that meets the needs and growth in this market.

“After our initial introduction of lending on BEVs in 2021, it was only natural to expand our product range into the LCV market, and also enhance our criteria for cars.

“We want to support the increase in the number of zero emission vehicles on UK roads. We have been pleased with the reaction to our BEV offering and we look forward to working with the trade to satisfy the growing market for LCVs.”

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