What to do in this situation?

you may want to stick to your budget, but have you tried the buy here pay here carlots or craigslist or auto trader,best bet when getting a car is always bring a mechanic with you if it happens to be used or bring a man with you period to dealership & try to get them down $1000 in this economy shouldnt even be hard I read online if you know how to haggle right you could get them down at least $5000 at the dealer good luck!