Speaking at Saturday's midday service break back in the rally's host city of Villa Carlos Paz, 700km west of Buenos Aires, Paddon said: "A good morning. Obviously we were going to push this morning and we were able to do that. The feeling in the car was very good, particularly in the fast sections. There were a few [hairy] moments here and there, but you're always going to have those when you're trying. We lost a little bit too much in the last technical stage this morning, but we've been able to build a good solid gap to Seb Ogier behind us now in the third and we've been able to maintain the gap, 10 seconds to Jari. It's difficult to catch Jari on speed alone, but we've just got to keep the pressure on and anything can still happen."
Wrapping up Saturday's action following Latvala's crash and his move to the top of the leader-board, Paddon said: "A very good day today. We're very surprised to be leading the rally but it's a nice position to be in. Following a good morning, we unfortunately struggled a bit this afternoon with the tyre choice. It's very unfortunate what happened to Jari with his accident but we were close enough to put on the pressure and pick up the pieces.
"There's still a long way to go with very tough stages," added Paddon as he chases his maiden WRC victory in only his second full season competing at the top of world rally sport. "We have to try and stay relaxed tonight and calm tomorrow because a 30sec lead over a three-time world champion on some of the toughest stages in the championship is not a big gap. We'll try to keep a good speed and try and make no mistakes tomorrow."
Paddon's Hyundai Motorsport team-mates Dani Sordo and Thierry Neuville are holding fourth and seventh respectively.
This is not the first time Paddon and Kennard have led a WRC event - in 2015, they topped the leader-board at Rally Italy Sardinia for 15 stages before a spin which meant they secured their first-ever second place in a WRC event. Since then, they secured another second place at this year's Rally Finland.
Sunday's final leg of Rally Argentina comprises 55.28 competitive kilometres broken into three stages, including two runs in the famed El Condor stage with its moonlike landscape among the rock-strewn roads of the Traslasierra mountains. The sunshine from earlier in the weekend is due to give way to rain and much cooler temperatures, so the final day could yet spring surprises.