<< $3,000.00, sporty, reliable with no "big mechanical failure". Not asking much, are ya? :Q
You can rule out most big mechanical failures with a test drive. I believe quite a few of the newer economy cars use a fiber timing belt instead of a chain. Those have to be replaced periodically or they could cause a big mechanical failure! I'm not sure how you would determine the car you're buying does or doesn't need that done. If you buy a car that uses one, you probably ought to figure on replacing it no matter what. A $3,000.00 car is probably going to need a LOT of things done. Tires, battery, brakes, exhaust, steering linkage, shocks or struts, tune up, paint and body work...
I'm with you on buying used cars cheap, but I count on doing repairs. I prefer RWD, V8, body on frame because their parts are cheap, easy to find and easy to install. If you buy a used "economy" car, chances are the economy aspect of it is gone by the time it's only worth $3,000.00. To me, the boulevard cruisers are more economical at that point. >>
Actually, a lot of cars a switching back to timing chains instead of belts. Belts became prevalent because they were quieter than chains, but as chain technology improved, belts no longer have as much noise advantage so companies are moving back to chains. Still, most late-model cars will have timing belts.
$3,000-$4,000 can buy a pretty decent car, actually. My car is currently worth about $1500 if I sold it to a private buyer, but all it needs is some minor bodywork to patch a small (maybe 2 square inches) in the floorpan. A mid-1990's Civic should be easy to find in good condition for $3,000 to $4,000. You will have to look HARD though. I generally plan on a minimum of three months to find a vehicle worth buying. There are exceptions when you find something right away, but it almost always takes a lot of time. There are a few key things to remember; never rush, never buy a car that they won't let you test drive, and never, never, never buy a car without having a mechanic check it over 100% (unless you're buying a project car and intend to work on it).
ZV