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Should be able to get an early MK5 05-06 Jetta TDI 5 speed for that price, nice interior, decent styling, Should run ya about $9-10k, 45mpg.
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+1 on the TDI's. My wife has a 2005 Passat and it regularly gets over 45 MPG. And despite the outward appearance, it's extremely roomy inside.