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Any particular things to look for or stay away from when purchasing a Dremel tool? Say for example, will a $20 cordless work as well as a more expensive one, as far as "working" on Hot Wheels?
My Dremel is a cordless and I love it. It was the $30 model I think...it has variable speed 1-10 which is great. You can go slow for tiny stuff and let it rip when you just need to grind. I would say just make sure it has more than one speed, otherwise a Dremel is all about the attachments. Find yourself some grinding bits and you'll be set.
I use an old corded one I've had forever. Mainly just use it with a cutting wheel or maybe a grinding bit. I use a drill for the rivets.