This is unfortunately very very true... and I second the recommendation of a Micra - their 16v 1 litre engines go pretty decently, faster than most other
1 litre engines of a similar age.The 93 to 97 cars differ slightly to the 98-2003 - but with your budget perhaps a low-end 98 model is out of your price range, I'm not sure how much they go for.
My first car many years ago was in fact a micra 1995 model - it doesn't have much street cred for a guy, but for a girl it's cute and bubbly. Alls I can advise is that you perhaps go to autotrader and have a gander, and if you or someone you know have a good eye for cars, a private (not public!!!) car auction could be a good idea. Good luck.