sorry you are wrong. every dealer we have spoke to has told us this. And my nephew who is a VP at a dealership said the same thing. Every person I knew got rid of a car no one got rid of a truck. Not too many suv's in the age bracket.
Actually, the mileage on the cars had to be under a certain miles per gallon to take advantage of CFC. We got rid of our van during CFC and the salesman told us lots of people were trying with their cars, but not many cars qualified because of the mpg restrictions. Mostly old very large cars, SUVs, trucks, and vans were the vehicles that qualified.
OP, I don't know about your area, but out here the dealerships are now keeping more of the older trade-ins and selling them in a "back lot" compared to when they used to just sell them at auction. With the economy in the pits, there are lots of people who need cheap transportation and the dealerships are finding they can turn a profit on the smaller, older cars like Toyotas, Hondas and Hyundais.
Some friends of ours just bought their DD a car for her 16th birthday. They found it in a "back lot" at a local Toyota dealership. The cars in that lot all passed their inspection test and were in running order, but sold "as is" with no warranty. They found a really cute 2002 Prius for $2995. There were a few dents in it that they paid extra to have removed. It has high mileage (140K), but runs great.
So check your dealers to see what they may have in their "back lots."
Also, a 2002 Hyundai is not a throw-away car. It's only 8 years old and Hyundais have a good rep and have had a good rep for many years now. It may be a fabulous car! We have a 1996 Geo Prism which still runs great. It's a 3rd car for us just to get around town. People ask me all the time if I'd be willing to sell it. If I decided to put my car on the market, your price range would fit the bill and you'd have money left over in your pocket because I'd probably sell the car for $1300ish -- and it has 96K miles on it! The paint is fading, but it runs like a champ. So there are cars out there -- you just have to keep looking.
Good luck!