I'm with Snowguy on this one. You'd be spending way too much of your income on a car either way. You graduate and have difficulty finding work in your field and go from living at home on $12k to living on your own on $20k.
Best bet is to keep saving and drive your Mercury until it dies, or your financial situation is more secure. Most car companies offer a decent new grad program. If the car dies before you graduate/can get a job in your field then:
Buying a used vehicle entails some risk, but it is almost always the smartest decision. Stick with something reliable and economical, like a Civic or a Fit. If you can't find anything in your city, check out neighboring metros - sometimes there are large differences in the market for used vehicles. You don't live in snow and salt country, so rust on the undercarriage (the bane of used car purchasers in my part of the country) will not be a problem.
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