Paragon Motor Finance has expanded its battery electric vehicle (BEV) finance offering to include Light Commercial Vehicles (LCVs).

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 strongly increased 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.

Terms for the electric LCVs include:

• Hire Purchase and Lease Purchase (LP on non-regulated agreements only)
• Balloons up to 85%
• LTV up to 90% on regulated & 100% non-regulated agreements
• Advances up to £75k 
• Deposits of 10% + VAT required on regulated agreements & VAT only on non-regulated 
• 24-60 months loan terms available
   

The launch comes following the successful 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
• No maximum age of vehicle at loan initiation - Max age at EOT 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.”

​​​​​​​For further information contact:

Annette Coyle
Media Relations Executive
Tel: 0121 712 2526

Notes to editors:

Paragon Motor Finance provides funding for cars (including electric), light commercial vehicles, motorhomes and touring caravans.

Paragon Motor Finance is a member of the Paragon Banking Group which is a FTSE 250 group based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group has over £12 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 5390593.  Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.  Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551.