Sometimes you can get genuine bargains. Here's some of my scores:
1. 1989(?) toyota corona hatchback. New belts, plugs, wires, fantastic interior and exterior, 220k KM, suspension had been redone. Cost me $400 because I found it on eBay and was the only person who bid. Got crashed into and lost it.
2. 1990 Mazda 121. Paid $600, used it for around 8 months before the clutch plate died. Pulled it apart, really couldn't be assed paying for parts, scrapped it.
3. 1993 Toyota Corona sedan (GF bought it on my command, I drove it everywhere), some old guy selling it for $1100. Had been in his garage his whole life. Less than 100k KM's, full service history at dealer, everything was just perfect, the only downside it was auto. I actually cried later that night when someone crashed into me, because that car was so beautiful. I've been looking for another one, but nothing of similar quality or price comes up.
4. 1994 (maybe 96?) Honda Prelude. Made my housemate buy this one. $1600, just had timing belt and water pump done, blew no smoke or anything, no troubles starting. Exterior was a 6/10, interior was 7/10.
After a week, the 4ws stopped working, which required me to resolder the joints (climbing into the back of a 2 door coupe, pulling the back seats off, unbolting the some stuff. Actually really hard job). 2 weeks later, the main relay started acting up. It would sometimes start, other times nothing would happen when you turn the key. Same story, resolder the joints. a month later the distributor rotor snapped, but was easy to replace. He ended up selling it sadly, because it seemed unreliable. I would've bought it if I needed another car at the time.
If you find the right ads, you can get a good car.
The two things I suggest are take off the oil cap, and see the colour inside. If you rub your finger in there, and the metal is still stained dark, avoid it. Also just a compression test.