Wheels first. They add performance ALL the time. Acceleration, turning, braking.
Not too mention if you pick the right set your will look better ALL the time.
Where as an exhaust only does its thing when you accelerate.

 

Based on your budget it will be difficult to get exactly what you want brand new unless you can find a good used exhaust or a set of wheels. Given that it is a DD, I would purchase wheels. You will enjoy them more on a daily basis. Although finding good shape rims with tires is going to be tough under 1k.

 

Bought my ap1 with a test pipe and HKS High power dual exhaust. It was fun for the first year, buzzing around, making noise, etc... but the stock wheels just don't cut it. 225s are just WAY too skinny for the rears. Picked up some brand new RPF1s that were sized to complement handling and it's a whole different corner ripper now.

If I were to do it from scratch, wheels would come first.

 

Exhaust is a vastly overrated mod for performance. All you really get is a lot more noise, with a tiny amount of additional power at the top of the rev range.

 

used to love exhausts
now, they're just the biggest waste of money to me. second to a $1000 intake
id get tires

 

Id personally do wheels first, especially if you're rocking ap1 wheels. Get wheels, nice tires, and you'd be set! Add a test pipe to free up some ponies (and this is a relatively inexpensive mod).

 

Not only did he buy wheels first but he has already sold the car.