Originally Posted by Kabigon
I agree, but...
There usually is an expectation of a "reasonable" value.
If someone was offered $5000 for a car (low mileage, excellent condition) that they purchased 2 years ago for $20000, they may not feel very good about it.
If I understand the thinking behind many of the responses here, it doesn't matter what the value of the car is in the above scenario simply because cars are not an investment.
I guess it boils down to your intentions are with the vehicle. For all of us that buy cars to drive them, thats the only point of buying it. to drive it. The only time the monetary value of a car really becomes a big deal is if:
A. after a Non-fault accident for insurance reasons for replacement or repair
(ie is the vehicle damaged beyond the point where it makes financial sense to spend the money to repair it or is it cheaper to just replace it with an identical vehicle.)
B. As a dealer of used vehicles where you purchase the vehicles with the intention to sell them for profit.
If the car was 20K new and after two years with low mileage and nothing wrong with it, it's only worth 5k. My thoughts are, if there are no problems and its low mileage, just keep it and drive it.
I come from a school of thought where you buy a car, you drive it until the wheels fall of from it.. and it is to the point where it isn't cost effective to repair it anymore over buying another one..
The car i traded off for my focus was that way..
It was 9 years old, with 68,000 miles and it was quite literally junk. It needed a new clutch, the shifter was worn out to the point it was trying to hit both first and third gears at the same time, the front suspension was shot, and the thing was starting to get cancerous rust. Also had some valvetrain noise that was rather alarming for the mileage.
If the value of a car is so important after 1 or 2 years, buy it when its 1 or 2 years old...