Best Grad Loan?

grad09

As a new graduate, is the best option for buying a new car by using a graduate loan from my bank, or by taking out car finance schemes offered by the dealerships. I would be looking to borrow 15k, and pay off over 5yrs. Is one cheaper than the other? And who offers the cheapest graduate loan deals?

Thanks

[Deleted User]

Most graduate loans don't go up to £15k - and it's a bad idea to borrow this money to buy a car. You're a graduate - why do you suddenly need a car?

Believe me - I've been there and done that with a Barclays graduate loan (not with a car though).

Don't borrow anything. Save up and get something cheap. Why do you need to spend £15k on a car - it's financial suicide!

prettypaula

buying a car is a total waste of money, for 15k youmust be looking at a large uneconomical car which will kill you on fuel and tax not to mention insurance.

i took out a personal contract plan on a citreon c1, lowest bracket tax, insurance and it costs me £35 to fill a tank and i can get 450-500 miles out of that.
i pay £100 a month, half of which i get back from work, and i dont lose any value on the car as after 3 years i just hand it back.

Ansu

To try answer the question: most banks will only provide grad loans if you have your graduate account with them (which you must have had your student account with them to upgrade to) so you may be stuck for choice.

I have found with Natwest, that banks are usually very accomidating to graduates. They offer graduate loans upto 15k, I needed 16k so they gave me a normal personal loan at the same rate as the graduate loan.

Contact your graduate bank account provider, while they will probably be your only choice, provided your relationship with them is good (i.e. you have not defaulted on payments or already owe them a lot of money) they should offer you something.