I'm not sure what the car market is like in your area, but I did a craigslist search here earlier and found a long list of cars that looked nice and get around 40mpg for $2,000 $3,000 and a few beaters (rust, dents, no major mechanical issues) priced at around $900.
Nice thing is, you don't need a car right this minute, you can shop and wait and drive what you are driving, but if you tend to get ice covered roads or live in an area that has deer or other wild life that tends to get hit by cars, buy one soon, before people start crashing their cars, at least around here cars sell fast right after the first snow fall and the first ice storm.
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