Some people like warranty coverage, something that often is only available (at least in full) to the original purchaser.
Some people abhor “sloppy seconds” and will only buy “virgin” cars
Some people like to flaunt their wealth, or at least appear wealthy.
Some people like the latest and greatest.
Some people are really fucking stupid.
Often it is some combination of those reasons. Personally, teh most I have ever paid for a car is $1,375 and most have been under $500. Yeah, most have needed some repair so the total cost was often closer to $800 or so, but that is less than one car payment and the difference in insurance costs for most people.
What would you think of a $300 car that the seller honestly told you all of it’s issues, including the need for about $750 in repairs ASAP, but needed nothing except maintenance thereafter? I ask because that is pretty much the old Corolla I’ve driven for the last couple of years, though I found a mechanic that did a quality job for only $500.
Many people pay thousands of dollars for something they don’t keep very long. I pay a few hundred dollars for something that lasts me long enough to both save enough money to replace it and do other things with the money I am not spending while the car lasts.
@Blackberry Those that cannot avoid a shitty used car often can’t maintain a new car and turn it into a shitty car anyways, thus rendering the point moot. Granted, I can do a lot of my own work, but I am too old and lazy to do so very often any longer. Now, which is more of a hassle; having a trusted mechanic or car-savvy friend inspect your purchase and possibly calling around for estimates or having to tell the landlord that you can’t afford to pay them this month because you have a shiny new car that you will soon be living in?