She was planning on spending at least $1300 for the motor, plus whatever her taxes gives her, and whatever she can get from the sale of her car. I would say probably $1500-$2000 tops.
She does have a job. She makes enough to maintain her livelihood as a single mom, but not much more. She doesn't take vacations, lives a practically no-frill life, doesn't do anything crazy (drugs, drinking, etc)...
As for a new car, she said her credit was a wreck, and was told by a few dealerships she would need a cosigner or a good deposit to get into one. I think she would find peace of mind in knowing that she didn't have a car payment by owning one outright--but I don't really understand women, so I don't really know where their logic derives from.