diesels for your price range are disco's with 200tdi, you may get a good 300tdi if your lucky. If I remember correctly, you cna tell the difference between 200 & 300 with the gearstick layout, I think 200's have reverse gear left & forward, 300's have reverese gear righ & back.
Check for smoke on startup from cold, a little bit of black smoke isnt an issue but once they are warm they should be clearer. A lot of white / blue smoke... go find another. There are plenty to choose from....
manual or auto.... go for the manual
3dr / 5dr. your preference but 5drs are more desirable
keep an eye on the electrics, make sure they all work
sunroofs / door seals usually leak but can be repaired easily
parts are very common so dont wory about where to get them from
dont go for the 2.0 mpi disco, these are cheap for a reason (cos they're crap).
You can look at the old thirsty V8's with LPG conversion (check to see of there is an offical certifcate with it for the fitting / checking of the installation). pence per mile they are on a par with diesels.............but diesels can run on bio fuels so could work out cheaper, search these forums for the best mix ratio (50/50, 10% petrol etc....)
With Disco's check for rot on the sills and bodywork, generally they are ok mechanically but once the tin worm starts eating away at it then it will continue. If its been welded or patched up properly, make sure it is properly protected (waxoyle / tetroseal etc.)
As for insurance, S2 / S3 u can get classic insurance and it usually around £100 year fully comp with limited mileage. For the modern vehicles is anybodys guess and would go on your typical profiels (age, address, ncb, claims etc.)
Anyone else got any thoughts ?