6 E36 BMW 325i. via M Composit. Much like the E30 generation before it, the E36 helped to solidify BMW's reputation as a producer of great sports cars. Even an E36-generation M3 can be found for pretty cheap, but for a real ground-up project, it's hard to beat a dirt-cheap 325is. Honestly, I think a honda might be your best bet. I had a '93 integra for my first car. It had a bit of work done to it (I guess some might call it a ricer), but it was a blast to drive. You could probably find something like that in your price range that got decent gas, was fun to drive, and cheap to maintain. .