Originally posted by: LordMorpheus
Lincoln Mk VIII would be good - same chassis/engine as the thunderbird, but more goodies.
Yeah except they handle like balls, although I can't say a Thunderbird is much better.
You want safe, reliable, fun to drive, and reasonable MPG? Subaru Legacy, late 90's. In your price range, reliable as hell, AWD, and fun to drive.
Do you want to work on a car a lot? Then get a <$5K domestic. I'm sorry but chances are all of them will need a good amount of work, unless they were meticulously cared for.
You can look at a Camaro or Mustang in the early 90's. If you go Camaro, go 90-92; the engines are much more easily accessible. Not great general transportation cars, as they are more cramped and won't drive well in inclement weather (esp for a novice driver).
Seriously: buy a four banger beater first. You
will wreck a V8 RWD vehicle without proper practice driving it. If you get one, find an auto-x track or one of those driving courses where they teach you to drive in emergency situations in your own car.