Thank you very much iRage for your valuable comment. I think you are right on not spending all on new car. So from your list of suggestions i did little research. I like the Charade, Mazda 323. I found few vehicles under 950K. Do you think if i look around (not internet) there is a chance finding a car around 900K? so i will have 100K for any immediate repairs and touch ups.
What is your opinion on indian and chinese cars? (like Chery QQ and tata indica)