Realistically its a grand for a recon box, not nice but not the death of a 5k car.
It's 20% of the cars value. Which for you is fine, and I wouldnt cry myself to sleep with that sort of bill either but neither am I spending £5k on a family runabout that's supposed to be reliable and economical. In the real world most people dont have £1k kicking around for car repairs. They should but they dont. Just look at the threads we get on here where people cant afford tyres, or whatever. £1k is not generally kicking around ready for car bills in the average persons life. Certainly not the average young guy with a new family.
The benefit you get out of an autobox in a car like this (Not having to change gear) is not worth the disadvantages (high chance of big repair bill, noticeably poorer fuel economy (Remember, a Xsara Picasso auto drinks as much fuel as a 6 pot BMW) and reduced driveability.
Just dont see the point.
And thats before we cover the point that by choosing automatic you are wiping out 95% of the potential cars on the market you could buy, making finding a good one that little bit harder.