As always with a £1k - £2k budget, condition matters more than make and model: you ideally need something that has led a reasonably easy life.

A dlesel would make sense, although older diesels are liable to expensive failure which can negate the advantage of economy. Something with the VW group 1.9 dlesel engine might be worth looking at, as this engine is long-lasting and without some of the modern appendages which can cause trouble.

Or a small Japanese petrol car like a Toyota Yaris might be more economical than the Fiesta, which I agree seems to be on its last legs.

Dare I suggest it - the word 'housemate' suggests rented accommodation which is less than permanent: maybe she should move nearer to her work?

I drive between West Sussex and Birmingham, not every day but still approx 165 miles each way.

I have a Rover Streewise 2.0 Ltr diesel. The engine is bombproof and I achieve approx 53 mpg. It is an attractive car and the SE model is well equiped. Air- con etc

Spares are readily available if required and the car can be bought at around £2000 for a 2004 model. Worth considering

I used to have a Peugeot 406 HDi Exec Auto when i was doing alot of miles, the HDi engines of the Peugeot's i've always found to be very good, but the 1.4 is too slow. I know the 406 is a big car but it never gave me any problems in three years of owning it, the only reason i dont have it now is some silly bint in a Vauxhall Zafira managed to crash into it in a car park.

A 306 HDi should return a good 50mpg or better if driven on motorways and a good one, even if it is high mileage could be picked up for around a grand now i would think. Diesel engines generally last alot longer than petrol so a mileage of 100k plus shouldnt be a massive turn off providing its in good condition with a good service history.

But you say its costing over £300 a month, if she's doing 5 days a week thats 600 miles a week. 2400 a month, if thats the case i think she's performing a minor miracle to do that on £300 worth of petrol at todays prices. Obviously i dont know her working pattern but if it is a typical 5 day week then i cant think of many cars in that price bracket, diesel or otherwise which would better that. A good Peugeot HDi might save £50 off that monthly bill.

Try a 6 speed Renault Megane 1.9 diesel. I commuted until recently 80 miles into London each day. Got 50 ish mpg, was comfortable and as fast as your licence lets you be. The 6 speed gives very long legs. You can buy them for around or slightly under 2k for a 2004. They have a reputation for odd electricla glitches like windows stopping working, but I've never had any problems (and have a copy of how to solve the windows in the glove box just in case). Only problem is how to stay under the speed limit.....

look for an x or thereabouts 1.4 polo turbo diesel .sips fuel and thinks it's a 2.0 litre .had one for eight years .brilliant.