Paragon Motor Finance has commenced lending on battery electric vehicles (BEVs), with finance offered on hire purchase and lease purchase agreements.
With the requirement for all new vehicles to have significant zero emissions capability by 2030, before becoming fully emission-free from 2035, Paragon has rolled out its BEV lending criteria that aims to support and incentivise consumers to move away from internal combustion engine (ICE) vehicles.
Timed to coincide with the COP26 climate change conference, the launch comes following the introduction of Paragon’s BEV policy, which was developed considering feedback sought from brokers and dealers. The policy complements the environmental sustainability programme adopted by Paragon Banking Group, of which PMF is a part.
Finance applications are subject to the following headline parameters:
• Hire Purchase and Lease Purchase
• Advances up to £125k
• Maximum age of vehicle at start is 3 years
• Maximum age of vehicle at term end is 8 years
• 24-60 months loan terms available
Julian Rance, Paragon Motor Finance director, said: “This year, alternative fuel vehicles (AFVs) have represented a substantial proportion of new car registrations. With the government announcing that they are bringing forward the date for ending the sale of new petrol and diesel cars by 10 years to 2030, this only looks set to increase.
“Listening to the market, brokers and dealers have highlighted that to support this anticipated growth, there is a need for finance offered on terms that can compete with that available on ICE vehicles.
“We feel that our proposition does that so we’re looking forward to working with our industry partners to support motorists and help to increase the proportion of zero emission vehicles on UK roads.”
Offered on cars only, loans are available to both consumers and businesses through intermediaries.
Earlier this year, Motor Finance spoke to Julian Ranch about the market for leisure vehicle finance, which received an injection of interest as travel restrictions meant holidaymakers holidays abroad were restricted.