When cars get below £1000 its a gamble to any buyer anyway. I mean a cat c/d may well turn out better than a non accident car anyway
Almost all cars under a grand will be 10+ years old. High milage, several owners so you realy are taking a risk anyway and at £200 scrap value you never are going to be that much out of pocket.
The insurance, tax and mot will cost as much as the car and when you fill it up with fuel you in effect are adding 10% to the value