If you want something that's no more than $1200 and dependable, than you'll have to be thinking about getting an economic car from the 1990s or earlier. Here are some cars I suggest:
Chevrolet/Geo Metro: Gets about 49-50 MPG on the highway, very dependable (came out in 1989, and many people still drive them on the roads). However, they are very utilitarian, don't be expecting anything sporty or soulful, unless if you want the convertible that they made in the early nineties, or find a stick. I'm not sure how big you are on safety, but you more than likely won't be very protected. (1989-1994 Gen) (1995-1998 Gen) (1998-2001 Gen [as Chevrolet])
Honda Civic: This car doesn't need much explaining. They're very dependable and because they still make them, it's very easy to find parts. You probably would want one from the mid-to-late 1990s. My cousin bought one, brand new in 1998, and she still drives it. It would be fun to drive in a coupe with a sunroof, but don't count on woodgrain (you could probably find a beige interior one). Also note that the engine is louder than other manufacturers (I'm sure Honda has improved that with newer models).
Toyota Corolla: Does not need much explaining either. They're good gas savers, hauling people around, and they are safe as well. If you want one that's in your budget, you will need to get one from the nineties. However, (this isn't really an issue on the car) you see so many of them on the road, they aren't very attractive (in my opinion).
Saturn S-Series: Made from 1991-2002, this series comes in a sedan, coupe, and wagon. They updated the design in 1997. Nowadays, they are dirt cheap. I saw in the Saturday newspaper that a sedan version from the 2000 model year ran for about $350 USD. (I would not buy that car if it was that cheap FYI because there's probably some problems)
(1991-1996 Gen [W/S] [C]) (1997-2002 Gen [W/S] [C])
Those are the base cars that I can really describe. There are other economy cars (or what would be considered economic and small today) like the Dodge/Plymouth Neon, the Ford Escort (ZX2), Toyota Echo, Chevrolet Cavalier, Eagle Summit, and many others.
Here are some that are more than likely cheap and sporty, but note that these cars are more than likely 10+ years old:
Eagle Talon (1990-1994 Gen) (1995-1998 Gen)
Pontiac Sunbird [basically a Cavalier, but sportier] (1990-1994 Article) (Coupe) (Convertible) (Sedan)
Plymouth Laser [rebadged Talon and Mitsubishi Eclipse of that era] (1990-1994)
That's all I can think of for now, I hope that this helps. Be sure to look for cars in the classifieds, Craigslist, eBay, etc. Good luck!
Forgot: Look at the different Geo models here, they're really quirky and cute, and gas savers as well...