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if you are unsure about what to look for in a car then take a friend along for the whole proses, from looking at the ad's to handing over the money, buying a car directly from the owner is going to give you the best price, buying from a dealer is going to give you a possible warranty, some standards in what kind of shape it's in as they have a check list of things to look at before selling it to you and they are going to charge you for that.
for your budget you should be able to find something that will get good mileage that is only a few years old that is being sold by someone who didn't like the color or something else stupid.
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