Buy the Rabbit. Did you buy the Rabbit yet? Are you buying the Rabbit right now? haha. That Honda with 120k miles and a new motor scares me - no old Honda should need a motor at 120k miles, and I would take a factory Honda motor with 300k miles on it over any "brand new" rebuild. Honda was still trying to be the Man in the market in the '80s and early '90s, so they put in work and made really good cars. On a low budget like yours I'd look for a '88-'91 Civic, with a 5 speed. Cheap as dirt when you can find one, and if you kill one of those cars, you had to be trying to kill it because they won't die. My '90 has a wasted headgasket, terrifying loud wheel bearings and input shaft bearings, goes through water faster than gas, and still gets me over 260 KMs for $20 worth of overpriced Canadian gas. If I leave it parked for a few days, one of the cylinders gets so much coolant in it that when I start it, it runs on 3 cylinders until it pukes out all the coolant and starts to run on all 4. But it always runs. And parts are dirt cheap for them. If you can do mechanical work yourself, they are pretty much one of the best cheap eco cars you can get.
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"Don't look for one place to lose 100 pounds, look for 1600 places to lose an ounce." - Tony DeFeo
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