I like the Japanese econoboxes, but you have to remember that reliability will probably diminish with the age and # of miles on the vehicle. I'm a Honda guy, and I will admit that it is tough to find a good used one for that price unless it is
really used. I was really lucky and found a rust-free VX for $1,300, but it needed an input shaft bearing. My wife and I drove it for 40,000 miles and sold it for $3,000.
I'd look at 125,000-mile mid-90s Cavaliers and Saturns. Several people on this forum have achieved up to 40 mpg with the Cavaliers and into the mid 40s with SOHC and DOHC Saturns. They are inexpensive to own, too, if you find a well-maintained one.
Of course, if you happen to find a good used Civic or Corolla 5-speed for $1,000, I'd be all over it.
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