MK1 Panda is a bit of a classic now and I have seen some of the 4x4s fetch nearly £2k. I think that one posted will fetch £500+.
The difficulty here is insurance and the need for something half safe.
If you can find a none rusting Fiesta MK3 for about £300-£400 that will make a very good buy, the MK4 is a lot better but you can't get a decent one for £400 these days.
The Corsa with the 8v engine in it is very good but again for £500 most of them have terminal chasis rot.
A Punto MK1 won't rust but suffer HG problems and just look tatty.
You might also be able to get a good MK1 Clio for £500 if you don't mind an early plate.
I think a 106 will be too hard to find in your budget as a lot of them which are still on the road are in great condition.
The AX is probably too unsafe to consider.
You might find an early MK2 Nissan Micra in base spec for £500, there is quite a very tatty ones round here going very cheap, they should be machanicaly decent if you can live with a few dents etc.
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