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[love2race]

All that really matters is what the mainstream determines is a valuable used car. The more the vehicle is worth to someone else the higher the resale value.

Maybe the Civic, as used as an example, is a piece of crap. Unfortunately, the majority of people disagree and as a result want to purchase used Civics keeping the resale high, so if I'm a potential new car buyer I'd keep that in mind.

Also, resale value on used cars has been declining faster and faster, another reason (albeit smaller) why GMAC has had such financial difficulties. When people 3 years ago, leased their new Envoy, Sierra, Monty Carlo, etc., lease rates were based on a much higher resale value then what they really ended up with. End result, who's going to buyout a lease on a vehicle, when you could buy the same vehicle used for thousands less. Result, lots of vehicles given off lease and a lots full of used cars that no one can afford to buy and those that can, have hundreds to pick from pushing down the price of used cars even further.

My brother, for example, has his 0% 3 year lease come due last fall on his 04 PT Cruiser GT. Buyout was $14 000, resale value less then $10 000. Needless to say, he gave the car back when the lease was up.

However, on the other hand, I picked up a Toyota Highlander Hybrid 08 last Feb in the US and as a result of the CDN$ slide I could sell it today for more then I paid for it last year, so I look at it that I've had the luxury of driving it for a year depreciation free.

What sucks is there are a lot of nice used cars out there for really good prices, especially in the US (stupid 20% decline in CDN$), and no one has the $$$ to take advantage of it.