Five years ago I bought a 1999 Taurus from a co-worker (got it checked out by a local mechanic first, who gave it a clean bill of health) for about $1,800. Three years ago, when my son turned 17, I gave it to him; he'd done most of his learner driving on it, liked it, and found it plenty roomy (at 6' 7", this is an issue). He had fun installing a great new sound system in it, and had to replace a couple of minor things (he bought the parts used and did the work himself), but other than the usual ongoing things (oil, fluids) it's running fine.

When I gave my son the Taurus I bought a 2004 Sorrento from a friend (got it checked out; again, fine) for $2,000. Had to buy new summer tires this year, but again, apart from the usual ongoing things it's been great. 

I chose to buy used for these prices not because I'm poor, but because I'd rather spend my money on other things. If the vehicle is sound and gets me safely from A to B, that's good enough for me.