For many, the means for getting to work can be a bit of a catch 22. Crowded and sometimes unreliable public transport isn’t always a barrel of laughs, but neither is driving on roads crammed with 35 million cars. Bike, anyone?

However, for those who find themselves in a situation where both a bike and public transport are impractical – and are fresh out of magic carpets – a car is a necessity in order to get around. The thing is, being in a position to afford one is easier said than done. Some 9 million vehicles are sold each year, but as many of you probably know, the costs don’t end there. Insurance, maintenance, fuel… it all adds up to a rather expensive equation, and one where you might find yourself in need of a helping hand.

The world of personal loans has been tainted by unscrupulous lenders in years gone by, but is fast becoming a versatile and decidedly consumer-friendly market. None more so than in the case of peer-to-peer lenders, which typically offer car finance with hugely competitive APRs and a convenient application process.

The efficient solution to personal finance
These platforms function entirely online, but the key to their impressive rates is the fact that they match those shrewd enough to lend their extra money directly with creditworthy borrowers in need of a loan. As a result, lenders benefit from a significantly superior rate of return on their money than they would have attained from a savings account or ISA.

And for the borrower, the absence of any margin-guzzling intermediaries such as banks, means they receive the benefit of this streamlined process too (ie: a competitive APR).

The procedure itself typically involves completion of a brief online form to get a personalised loan quote, with the subsequent application process being equally swift. Being an unsecured loan, the application is then underwritten by a team of credit experts, who perform the necessary checks to ensure creditworthiness. However, a decision is then returned within one working day, and, if the answer is affirmative, the funds follow overnight.

Some P2P platforms such as Lending Works even offer the option to make overpayments or early repayments without charge. It all serves to quash the illusion that personal loans come with a higher APR than a secured loan. Indeed, the gap has been bridged, and the convenience and accessibility to good-value credit only enhances their appeal.

So what does it all mean for me?
Well, it leaves you in a position of strength in your bid to gain a car loan. By all means, shop around, do your homework, and leave no stone unturned in your bid to seek the best possible deal for yourself. We now live in a world of options, and, given that a loan is a big commitment, it makes sense to explore them.

But you may find yourself coming back to peer-to-peer lending, and if you do, feel re-affirmed. After all, there’s every chance you’ll then be driving away in your new set of wheels within 48 hours, content in the knowledge that it’s financed by a repayment plan which works for you.

 

 

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