Well this is what we ended up doing.... We found a 1997 Rav4 with150,000 miles on it and paid $2500 cash for it fees and taxes included. I feel like that was still too much but we haggled all afternoon and that was as low as we could get him down to. I told my husband if he would just get a beater car cheep then when we get our van paid off I would let him get what he wants once we get some money saved up for it. Also we found our 16 year old daughter a car... a cute Ford Escort 2 door, kind of sporty looking for $4600. She just got a job at McDonalds so she will be paying for it. She had $1000 saved up for it and she financed the rest. I"m just hoping my hubby's new car will last him for a few years... you never know?
If you don't know much about mechanical things, have a family friend or relative that is good with cars go with you. If you don't know anyone, then pay to have a mechanic check it out. 
