Hmm... I think I'm going to go against the grain of the forum and suggest that perhaps it isn't quite as bad an idea and you'd first think.
The 316i/318i unit is fairly reliable and economical, the E36 design has been around for donkeys years so there probably not a single arches mechanic out there who hasn't touched one, parts are plentiful and pretty cheap, etc.
It's all good to 'play it safe' but at this sort of budget it doesn't really matter. You've got to keep your eyes wide open with absolutely anything you buy. And Remember that stuff like a Focus does carry a premium, so you may very well end up paying more money for less car.
Judging by her friends lack of car knowledge I wouldn't even bother spending £1000 on a 13 year old BMW, it is prone to so many problems and within a month could have a large bill.
Its like Maserati's, you can get them for the price of a new Mondeo but they have ferrari running costs which people forget about.

