2004 Audi TT 225hp quattro AWD 2dr Hatchback (1.8L 4cyl Turbo 6M)
Review
You can pick up 1st generation TT's, convertible or coupe for under $5k today. If Audi built it today, it would be $60k in material to build it. Own a contemporary classic for chump change. Just do timing belt and h2o pump every 70k and you will be good. Don't expect a wicked fast sports car, but a go in the snow GT.
Update 2018: 14 years in, and still a great car. Recently did a 400 mile day and driving normally, got close to 36 mpg.
2004 Audi TT 225hp quattro AWD 2dr Hatchback (1.8L 4cyl Turbo 6M)
Review
...but I love it all the same. Got my TT Quattro Coupe for a song - while working at a VW/Porsche/Audi dealership. Best thing about the job was leaving with the Audi. It's been a stalwart car. More a GT than a sports car, it's a little slow off the line, but really shines at 50mph - +90mph. I live in a mountain community, and I often times just snick the transmission into neutral and coast. It's a great little sleeper car; on the open road, I get mileage in the high 30's. And storage, with the seats down, two full kegs of beer fit. I know this to be true.
Be aware of the dual clutch automatic needs regular (frequent) servicing at a dealer, the hydraulic shifting controller must be in top shape to prevent a jerky ride in traffic. On the interstate you won't notice.
I bought this car 5 years ago in 2008 with only 28K miles and even though its fun to drive the repairs has been ridiculous. The factory warranty expires at 48K/4years. The car was 4yrs and 5 months when I bought it. At 32k the instrument cluster needed replacement at a cost of 1,250. At 40K the water pump needed to be replaced 1,850. At 45k the transmission needed to be replaced 5,200. At 56k the alternator, belt and tensor were replaced 1,650. At 72k the alternator was replaced again for 595. Audi should've replaced the the instrument cluster and the transmission because both failed before 50k but they washed their hands. After this experience I'll stay with BMW,never buy an Audi again.