Paragon Car Finance has extended the maximum term of its hire purchase (HP) product for motorhomes from 7 to 10 years.

The Solihull-based car finance provider launched HP for motorhomes earlier this year, offering loans between £10,000 and £100,000 for new and used models no older than 5 years upon signing the agreement.

According to Paragon, the extended HP term takes into account the slower depreciation experienced by motorhomes relative to cars.

Julian Rance, head of Paragon Car Finance, said: “The UK motorhome market is going from strength to strength. New registrations increased by 21% in 2015 and today there are over 225,000 motorhomes on the road.

“Dealers looking to tap into this high value market can look forward to competitive interest rates and a flexible product capability from Paragon to support their growth.”