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Motor industry changes looming

There’s a lot to talk about in the motor market with so much change going on.

Not only are there new fuel economy tests through the Worldwide Harmonised Light Vehicle Testing Programme (WLTP), there is also the Government’s Road to Zero strategy to eradicate fuel-powered cars, the forthcoming Financial Conduct Authority’s report on the motor finance sector and dealer groups looking to used car sales to boost margins amidst the uncertainty of the UK new car market.

Along with that, there is also the backdrop of Brexit and worries about consumer sentiment adding to anxieties as dealers prepare for new registrations this month.

Although the most popular cars in the UK are pretty consistent, I wonder how long it will be before manufacturers of vehicles that address issues like proposed diesel bans in cities and the desire for more in-car technology will start featuring in the top 10 most popular list.

Will we see the emergence of traditionally low volume brands like Tesla? Or will the main volume brands continue to steal the march? Much will depend on how advanced their research and development programmes are.

As you’ll be aware, the biggest seller of new cars in the UK is Ford Fiesta with popular brands like Volkswagen Golf, Nissan Qashqai and Ford Focus hot on its bumper, according to The Society of Motor Manufacturers & Traders (SMMT) figures for the year to date.

Here at Paragon, our head office is based in Solihull near Birmingham – a city which is currently consulting on plans for a Clean Air Zone, which would see drivers of older diesel and petrol cars charged up to £10 per day to travel into Birmingham city centre from 2020. It’s not the only city considering these kind of changes, Bath and Manchester have been looking at similar possibilities. That is bound to play on people’s minds when they consider their next car purchase.

What’s clear is that in these changing times, people have individual needs and preferences - something that we appreciate here at Paragon.

As a specialist lender and part of Paragon Banking Group - a FTSE 250 company with more than 30 years of experience in lending - we pride ourselves on listening to dealers, brokers and other intermediaries to understand how your business works.

At Paragon motor finance, we offer a premium personal service and fund across multiple assets from cars to vans, motorhomes and caravans. Unlike many of our competitors, we give you direct access to underwriters to discuss in person any deals or decisions.

In the car sector, for example, whilst we can make lending decisions in seconds, it is our flexibility and appetite to understand the full mechanics behind the deal that has led to us becoming a specialist in funding high value, prestige vehicles.

We are keen to explore bespoke solutions for long term introducer partnerships, and recognise the changing face of motor finance on the road to zero emissions in 2040, which is likely to see distribution moving away from the norm.

In a time when individual needs, choices and options are coming to the fore, we understand just how important the option of flexibility is. After all, with so much going on, it’s good to talk - so why not talk to us.

Discover our motor finance solutions, contact us at [email protected] or speak to us on 0345 149 7777.

30 August 2018

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 05390593. 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