Hi Rebecca,

OK, well to make sure you’re hitting your desired marks in terms of finance, can I suggest first that you go and talk to your bank manager or Credit Union, and get yourself sorted out with a loan with comfortable repayments? Then you’ll be able to argue a better deal for yourself when you go to buy a car, as there’s nothing a dealer likes better than a cash buyer. Secondly, don’t buy diesel if you’re buying a small car – it will be much more expensive to buy up front and you probably won’t be doing the kind of mileage that would allow you to claw back the extra cost in fuel savings. If you’re buying a small car, stick with petrol. And if you need something reliable (and I assume you do) then stick with Japanese. That kind of budget would get you into a 2008 to 2009 Honda Jazz or Toyota Yaris, and you won’t go wrong with either of those.