Why not go for something like a Volkswagen Golf Driver? You get the looks of the GTi, but a 1.6-litre engine so the insurance and running costs shouldn't sting you too much. It's old enough to feel retro, but modern enough for you to use it every day with decent parts support and good scene around it. If you want something rear wheel drive, you could have a look at a Mercedes 190 or a BMW 3-series (E36). If you'd like to keep it British then you could go for a Metro. Or if you fancy of a bit open-top motoring then a Mk1 Mazda MX-5 is a good shout.