I'm going to adapt something I've just said on another thread, so I hope it may be helpful to you too.

The lower your budget, the more it's true to say that condition matters more than make and model.

But if you want a more specific suggestion , you could look at another Ford Fiesta or a Focus, or VW Polo or Golf (as there are lots around), but personally for around £3,000 I'd look at a Toyota Yaris or Corolla. Nissan Micra or Almera are just as reliable, but the Toyotas are a little better to drive if you go for the larger engine option (1.3 Yaris, 1.6 Corolla).

I should add the old-shape Honda Civic as another good, reliable car to look at.

Edited by Avant on 21/07/2010 at 22:41

£150 per month over 36 months gets you between £4,000 & £4,500 depending on the interest rate.. You say it's payment OR £3,500 but if you have some cash I would be tempted to put £1500 deposit & for £150 per month get yourself a 2 year old Kia Picanto (if you can get one sub 18 months old & on the Approved scheme you get a 3 year waranty & 24 months RAC included)

The way finance works in the car trade is that the newer the car, the better the rate. But check the banks as to how much they will charge.

As a young (??) graduate, finance will not be freely available but your circumstances will dictate. Have you just graduated as a medic? or an engineer?or with a law degree. Or perhaps a teacher with a guaranteed job for life (unless you get too friendly with the pupils!). If so your chances of finance are pretty good. On the other hand (& I'm being realistic not insulting) if you've graduated in drama or business studies & have a job in a supermarket, the chances of finance are slim.

Good luck