AutoTrader.com features many cars for under $1,000, but watch out for listings that are just advertising the price of a down payment. Many people advertise cars for under $1,000 on Craigslist, but be sure to read Craigslist's articles on avoiding scams and fraud. Ebay.com features cars for under $1,000 and purchasing one of them through the website typically qualifies the purchase for eBay's Vehicle Protection Program against fraud and other risks.
One way to get a good car for under $1,000 is to buy a car with a salvage or rebuild title. These are cars that were totaled by an insurance company after being damaged in a flood or an accident, and were then rebuilt or repaired. You can often get them for cents on the dollar at local auctions or at websites such as SalvageZone.com, where they are sold as is and without a warranty.
Many insurers will not provide insurance for cars with a salvage or rebuild title, so check with your insurance agent before buying one. Many banks and finance companies will not make a loan for the purchase of a salvage or rebuild vehicle. State laws vary on the process for registering vehicles with salvage and rebuild titles, with some requiring a special inspection of the vehicle before it can be registered.