[hocus pocus]

That seems tricky, because the car in theory was yours, but it wasn't registered with your name. You said the check was in your name, though? Yours and your grandmother's? The money belonged to the two of you, then, not to your mom and your step dad.

You said there's a number of things you don't like about your car, notably that it was in an accident and sustained serious damage. How does it handle after being fixed, though? I was opposed to cars that had an accident history until I found (and did research on) my car. It handled well.

I don't agree with what your parents did, but when it comes down to it, you have to work and you have other errands you need to tend to. Maybe you can sit down and weigh the options you listed: asking for 1k back, or taking the car your step-dad had fixed. You can get a car for 1k, but it could be worse off than the one you have now. Maybe the mileage on the Honda isn't ideal for you, but it is a car, and it will do its job in getting you around until you can get something else you like more.

Regardless, I hope you come to a decision that you feel is best for you.