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Paragon Bank offers several easy ways for you to get help with financing your next vehicle. They work with UK dealerships and brokers that you can trust. Paragon is ready to help both people and businesses. The bank gives you Hire Purchase (HP) and Lease Purchase (LP) options.

You can use these services for cars, caravans, motorhomes, and light commercial vehicles. When it is time to look for the right financing, Paragon will help you find a way that fits you or your business. No matter if it’s a car, a motorhome, or a caravan, Paragon makes it simple to sort out how to pay for what you need.

Paragon is approved by the Financial Conduct Authority. The company is a member of the Finance & Leasing Association. Paragon checks all motor finance deals to make sure they follow the right rules. It gives fixed-rate loans so people can pick the best loan for their credit score and what they need. Paragon does not use any discretionary commission arrangements in its loans.

Key Facts About Paragon Car Finance

Feature Details
Loan Type: Hire Purchase (HP) or Lease Purchase (LP)
Interest Rate: Fixed – agreed at the start of the contract
Loan Term: 24 to 60 months
Minimum Deposit: May be required (varies by broker/dealership)
Balloon Payment: Only applies to Lease Purchase agreements
Early Settlement Option: Yes – settlement figures available on request
Regulated By: Financial Conduct Authority (FCA)

What Types of Motor Finance Does Paragon Bank Offer?

Paragon gives people two main ways to get car finance:

Finance Type Features
Hire Purchase (HP) Fixed monthly payments, full ownership after final payment
Lease Purchase (LP) Lower monthly payments with a final balloon payment option

Both options give you good rates. You can have the loan for between 24 and 60 months. You can use it to get cars, hybrid vehicles, motorhomes, or light commercial vehicles.

How Does the Paragon Car Finance Application Process Work?

Paragon works with UK car dealers and brokers who have approval. Here are the steps you will go through in the process:

  • A dealer or a broker will get your finance request and then send it to Paragon.
  • Paragon will look at your credit history. They will also check if you can pay back the money.
  • If you get approved, Paragon sends the finance papers to you with help from your broker.
  • You sign the papers. After that, you start to make monthly payments to Paragon.

The FCA is there to look over every step. The main goal is to keep things clear for you. This helps you know what will happen while you are in the financing process. The FCA is there to help keep you safe from start to end.

Who Can Apply for Paragon Car Finance?

To get motor finance from Paragon, you have to meet some basic rules. Paragon will look at your credit history and see if you can pay the money back. Most of the time, Paragon checks this by working with a dealership or an approved broker.

Here’s a summary of typical criteria:

Requirement Details
UK Residency: You must live in the UK and provide proof of address
Age: 18 years or older
Vehicle Source: Must be from a Paragon-approved broker or dealership
Credit History: Typically fair to good – matched to Paragon’s credit scorecard
Proof of Income: Required to check affordability
Driving Licence: A valid UK driving licence is needed

Every application gets a credit check. Paragon also checks to see how much you can pay. They will look at many different credit backgrounds. But, it is better if you have at least a fair credit score.

Who Can Apply for Paragon Car Finance

Can I Finance a Used Vehicle Through Paragon?

Yes, Paragon Bank offers motor finance plans. You can use these plans if you want to buy a used car. Paragon has options that can fit what you need.

  • Cars that are up to 10 years old
  • Light commercial vehicles that people can use
  • Motorhomes and caravans, but these need to meet age and price limits
  • Hybrid or low-emission vehicles

The dealership or broker will tell you if you can get approved for the car that you want.

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How Do Paragon's HP and LP Car Finance Options Compare?

Feature Hire Purchase (HP) Lease Purchase (LP)
Ownership You own the car after final payment Ownership after balloon payment
Monthly payments Higher Lower (balloon deferred)
Deposit required Yes Yes
Early settlement available Yes Yes
Vehicle usage limitations No Based on mileage and vehicle condition

Paragon does not have Personal Contract Purchase (PCP) right now. The best option if you are looking for something else is Lease Purchase.

What Documents Will I Need to Apply

What Documents Will I Need to Apply?

To get a Paragon car loan, your broker or dealer will often ask you for these things:

  • You must show who you are. You can do this by showing your passport or driving licence.
  • You need to show a bill or a bank statement from the last few months. This proves where you live.
  • You have to tell what you do at work. You also have to share how much money you get paid.
  • You need to give details about the vehicle. Make sure to include the year of the model, the miles on it, and what it is worth.

All personal data is managed by Paragon. They use their own security rules for this. Paragon also makes sure to follow the FCA rules.

Are Paragon’s Rates Competitive in the UK?

Paragon offers:

  • The loan gives you an interest rate that stays the same the whole time you have the loan.
  • You can pay back what you owe over two to five years.
  • The amount you get will depend on how old your car is and what it is worth.

Paragon usually gives prices that are about the same as what you get from other lenders and big banks. This is for when you want to get used car finance at dealers. Paragon does not work with you straight on. You need to go through a broker. The broker will try to find you the best deal.

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Can Brokers and Intermediaries Use Paragon?

Yes. Paragon works with UK car dealers and people in finance that you can trust. They build good relationships with UK dealerships and those who work with money and car finance. Paragon helps connect these finance brokers to UK car dealers and other groups in the UK. These groups help make deals happen.

  • You will get full training before you start with the panel. There will also be onboarding to help you feel ready.
  • SAF has approved the guidance. This makes lending fair for all people.
  • There are no discretionary commission arrangements.

This helps people be safe from prices that are not fair. It also makes the money process open and clear for everyone.

What Protections Do Customers Have?

Paragon Bank is:

  • The company is checked and given permission by the Financial Conduct Authority (FCA).
  • It is part of the Finance and Leasing Association (FLA).
  • All the staff are SAF-approved. They have the right training, so you will get clear and easy information about money things.

Customers can get help by following the FCA complaint handling rules. Paragon also has its own support team. You can call or email them if you need help.

What Protections Do Customers Have

Are There Any Recent News or Regulatory Changes?

As of 2025:

  • The FCA is looking into how DCAs were handled before in the motor finance field.
  • Paragon says it does not use a discretionary commission setup. So, their customers will not feel any effect from this.
  • Paragon keeps working to make its customer service better. The company has made its helpline hours longer. It is also working with more broker partners now.

This makes Paragon look like a company you can trust and talk to when it comes to motor finance.

FAQs About Paragon Car Finance

Loan amounts at most dealerships start at about £3,000. The amount you get will depend on the value of the vehicle.

No, Paragon Bank PLC is not a part of Lloyds. Paragon is its own bank based in the UK. The two banks are not linked in any way. They work on their own.

Yes. Paragon does give HP and LP for motorhomes and caravans if they can get it. The age and state of the vehicle help to know if they are able to get cover.

Yes, you can ask about the settlement amount at any time while the agreement is in place.

Yes, Paragon talks with brokers to help people get money for different cars. This includes electric and hybrid cars. So, if you want to use Paragon, you can get help with these kinds of cars too.

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Page last updated on: 07/08/2025

Page reviewed by: Andrea Troy

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