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I've done it in the past but I used the non-running car as a parts car and robbed stuff off of it, in my case the transmission and a whole bunch of electronic sensors. Got my daily driver back on the road replacing the bad transmission for around $250 total. That was >3 years ago, still driving it.
Mechanics specials aren't for the general public paying for work to be done.
Multiple people have cited cars for under 5k that are anything but trash. I cited an 08 elantra with 80k miles for 3.5k
Sounds to me like you may have champagne tastes on a beer budget.
Im 6' 4", I need midsize and up. Ive tried to fit in many small cars for a good price, but it was unbearable to drive for over 10 mins. The only small cars that were comfortable for my height were outside of the $3-5K budget. Cruze, Focus, and a few others. I like duratec Taurus's like my 2000, but they are hard to find, and when getting a used one, you never know what your getting on those. A 2008 Fusion V6 wanst too bad, but most people want $8-10k for them with 100K.
Im 6' 4", I need midsize and up. Ive tried to fit in many small cars for a good price, but it was unbearable to drive for over 10 mins. The only small cars that were comfortable for my height were outside of the $3-5K budget. Cruze, Focus, and a few others. I like duratec Taurus's like my 2000, but they are hard to find, and when getting a used one, you never know what your getting on those. A 2008 Fusion V6 wanst too bad, but most people want $8-10k for them with 100K.
Neither could I when I bought a car with a stick. Beggers cant be choosers tho. Time to learn. Lightly used cars with a manual are a good bit cheaper than light used cars with an auto.
Tell the dealer when you show up and odds are they will help teach you.
Not all blown engine/bad tranny cars are lost causes from bumper to bumper. My last five and current two have all been bailed out of auto salvage yards. But......you must be able to know what you're looking for in regards to the rest of the vehicle condition and you absolutely must know how to do the majority of work yourself. It isn't for everyone, heck, it isn't for 99% of the people out there who own cars.
I'd also shy away from anything $3k to $5k on any used car lot. Too many times I've seen people plunk down good money for a vehicle that was massaged back to health in the cheapest of ways with a slap and stick inspection put on the windshield. However, if you know what to look for you might get lucky.
Use whatever money you have as a down payment and get a reasonably priced newer used model from a known to be reputable dealer.
It depends on if you can function day to day while your vehicle is at the mechanics, until everything is fixed.
I bought an old used Nissan that I knew would need work. It had what I wanted, which is hard to find where I live - it's an automatic, with an extended cab (pickup). It drove well enough that I could get it home (about 5 hours away - I live in the boonies), but I figured it would probably need another $2000 to get it in the shape I wanted, including DMV fees and new tires, etc. Bought it for $2,000.
But, I'm retired and the mechanic is within walking distance.
The upside for me in buying this old truck, is that it was what I was looking for - a small older pickup that was automatic with an extended cab.
Now, for me, buying an older fixer-upper makes financial sense. The DMV will always price my registration based on my purchase price. I could completely rebuild the thing, and as far as they are concerned, it's a 93 Nissan pickup with bluebook value about $2,000. Same for my insurance. So, this older fixer-upper, which I intend to keep for many years, will cost me much less over many years, than a more expensive vehicle up-front.
I do think it's important that you choose a fixer-upper that has a reputation of being dependable, once you get it in good shape. My old Nissan will now probably run hundreds of thousands of miles without much more maintenance. It's a worthy investment. An old American made car, normally is not worth the investment, in my experience.
But, my truck has been at the mechanic's at least 6 times for at least half a day over the last 2 1/2 months, while he fixed things as they came up. It was there again today while he figured out where a leak was causing water to accumulate under the passenger rear area under the cab. He's replaced the intake manifold gasket, and aligned the tires and fixed the heater, and replaced broken parts on the dash and outside parking light fixtures and the grill, etc. My next trip will be for him to install a new radio and speakers. Then, hopefully, we're done for a while.
But, if you don't want to deal with having to drop off your vehicle for a half day many times until the issues are dealt with, or you don't have the time to do it yourself, it might be worth the extra money over time to buy something newer. For me, I expected this, and am thrilled with my investment. To each his own.
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I cant drive a stick 
