Found a 2008 Rabbit with 57,000 miles for $6,500. Only caveat is that it has a salvage title. It's being sold by a dealership here in Phoenix that deals only in salvage titled cars. Believe it or not, they have a stellar reputation. I even have a colleague who has bought several cars there and speaks very highly of them.
This would be more along the lines of my original plan to just pay cash for a car and call it a day.
http://www.bestwesternmotors.com/200...1/Details.aspx