Another idea for you to consider:

Buy back your car for salvage. Generally the salvage value of the average car is about 20% (it may be less). The company will cut you a check for the pre-tax amount less the 20% AND you get to keep your car.

The money you get may be able to get you into a nice foxbody 4-banger. I'm assuming most of the major parts on your car (motor, trans, rearend, and many of the suspension components) will still be good. You can gradually swap these parts over from the old car into the new car. Honestly, a 4-banger to 302 swap is a weekend worth of work...particularly if you go to a carburator.

What you don't end up using from the old car that aren't destroyed (i.e. interior parts, hatch, misc exterior parts, etc.) can be sold.

This may be your best bet to get into a nice foxbody for your price range.