Knowing that my girlfriend will need a car after she finishes college, I decided to keep an eye out for something nice and affordable to roll her thru her first working year(s). I wish I hadn't done that... :-)
Her requirements were simple... it had to fit in her neighborhood (TINY parking spots) and still be OK for long distance driving. Fairly quick acceleration would be a bonus - both fun and practical. Looks don't matter at all.
My own preference is with Toyota but the only Toyota that could qualify would be a very old Corolla. I kept my eyes open but couldn't find one that fit the bill. So first we looked at an '85 Peugeot 205 GTI 1.6. Small, fast, lots of fun to drive but had a few problems. The car was fixable, the price was right, but her parents objected : the deal was off.
Next thing to pop up was a '90 Peugeot 309 XL 1.4i with a fried clutch. Seller insisted the rest of the car was in very good shape and the asking price was only 100 euro! Long story short... I bought it and am fixing it up for her now.
For a clutch change the gearbox has to come out. The flywheel will probably need resurfacing. The engine needs a bit of work too, as it is a heavy smoker. Valve seals I think, but because it isn't all that powerful anyway, the idea was born to drop in a 1.9 drivetrain from a wrecked 205 GTI 1.9. So we're working on that now.