A little out of the sqaure - spend $400 and an air compressor, a few hundred on paint and body filler, maybe $600 on a mig welder and $300 on a body working course....and do it yourself.

It would probably cost you a couple of $1000 in materials and tools - but at least you could get the job done right.

With the other $3000 by something nice as your daily driver so you can spend the next year fixing up your 1200.