I don't know if you saw my epic thread, but needless to say I completely get this. If people don't understand that 1200 quid a year into your savings isn't a decent chunk then I'd probably not listen to them.
However, you're not freeing up that much, which could easily be absorbed if you buy a lemon. I started trying to find something fun and cheap but I realized that I was better going for cheap and reliable to give me more to put back into savings. It was easier for me because I've managed to wangle access to sone weekend fun for almost no money, so a boring car was an easy choice - a 1500 quid accord.
Actually, I might be onto something.... Accord type r?