I just don't see the reason to throw out a grand to buy a POS car, spend thousands to fix it up, only to probably still send it to the junkyard soon after -- makes absolute ZERO sense.
We just "blew" a grand on a "POS" car. It's a car I've been driving over a year, already put 20,000 miles on, and has 135,000 overall miles. It gets about 400 miles to the tankful, which means I can fill it up for under $30 even with gas over $2/gallon. It's a Nissan, which means, with regular maintainence, it will run...forever. Because it's a 1993 Sentra, my insurance is cheap as well. Is this car much to look at? No. But it's cheap to fuel, comfortable on long trips, doesn't cost me out the butt to insure, and it's the last car a cop would look twice at. Oh yeah, the only thing that's had to be replaced on it in 135,000 miles is an alternator.
Your inexperience in life shows well in this thread. Your perceptions of what is and isn't regarding the purchase of a vehicle are black and white. Cars are a tool, not a fashion statement or accessory. Most people who live on Earth worry about reliablility first. Because a vehicle isn't much to look at doesn't mean it's a POS. What's UNDER the hood is what counts, regardless of the package. Not every car for a grand is a waste of money, and NO car for a grand is waste for a teenager.
Just like you say - you get one shot (4 years) with a new car. If you wreck it, if it gets stolen (2005 Mustangs are a wonderfully popular target in the great city of Detroit), or you simply do what every adult on here knows you will, and just run it into the ground so far the resale/trade value plummets to subterrainian levels, you're done. You're walking, and still paying thousands on a car you no longer have. Or at least your parents are.
When my car dies, I'll be walking too....to the dealership to get another one.