The Ultra LX2 is not a race buggy, its a basher.
Mugen MBX6E is $470
Tekin 1900KV Combo is $330
Futaba 3PL is $115 (You may end up wanting to get something better down the line but its a good place to start)
If you're gonna race you will need a couple of 4S packs Look at Turnigy Nano Tech lipos to start off with. You can get those for around $58/ea. + S&H
You can pick up a decent 200W charger from HobbyKing the you can again start out with for $40-60 bucks. So yeah you might need 1100-1200 up front but youd have a top notch racer and you can upgrade lipos, radio equipment, and charger as needed later on down the line.
If you just can't save up another 100-200 bucks then look at the HotBodies VE8. I think you can pick that kit up for about $150 bucks less than the Mugen. Its not as good as the Mugen but its a decent racer.