This is the best thread ever!
Tom, as others have stated you can find a decent and safe car within that budget. One of the best ways of finding one and when you're ready, letting people know you're looking for an inexpensive car. Many of the best deals I've heard about were unadvertised sales of cars, although as Jon found out, it.com and other sites can be a good source as well.
Have you ever been out on a track before? If not, you owe it to yourself to do a few high performance driving events. Lime Rock and other tracks are relatively close to you. Related to this, have you been to any of the SCCA regional races? (Several of us who have posted on this thread race at Lime Rock and other tracks you would.
Since you mentioned you're looking for an inexpensive car, I would also imagine that you're looking to keep the other related costs down too. Becareful during the process and get the things you need to race & be safe versus the items you
"need" (meaning want). Racing jack vs. a basic jack. When I started racing, I found this a bit challenging. Oh, look what I just found! This custom XXX is only $X - what a deal. Fortunately I would send my great idea to one of my friends and he would talk me out of it, and vice versa.
I will openly admit that when I added up the costs and actually put them down on paper (even though I was doing it using a very low budget), it was a bit depressing. There's a good reason I prefaced that section with a warning in bold font followed by "The following can lead to sever headaches and heartburn. Proceed with extreme caution. Having a strong beverage may be useful." The positive news is that all expenses do not need to be done at once. Now that I'm trying to keep up with the Blethens and others, my darn budget keeps growing.
If you have any other questions, just ask. The people on this forum are excellent resources, friendly, and won't make you feel silly. (No, I'm not just saying that because of the support they've given me with my book efforts.)
Oh, Greg is saying that because he's the president of RRA (Road Racers Anomyous). There's also a reason why my wife refers to racing as my "habbit" and Greg is my sponsor. Speaking for myself, although I have sacrificed other things (no longer golf or ski, don't spend much money on non-racing toys, ect.) it is well worth it! The friends, memories, and experiences gained from racing are just awesome. I'm glad I won't look back on my life and say "I regret never tried to race. I wish I had." Life is too short.