Just look round you will find a decent car for cheap . I bought a Polo Coupe S 1.3 Mk2 for 250 as my first car. Spent about 300 to sort it out for M.O.T at Christmas. But now i've sold it after a year for 200. Way i look at it i've spent 350 for the car. Got my year no claims so i can insure on a better car. which i've bought my self a mk4 golf gt tdi 110 bhp for 3000 with F.S.H and piles of receipts so it's been looked after, even though its done 126k yet it still pulls. Raced a apparently 1.6 tuned focus to 120 bhp ha other day, but i think the torque took me a head .
It depends what you want the car for, keeping it for a few years? as my main aim was to keep me going for a year and to build up a years no claim so i can insure/cheaper on a bigger engined car.