I have a 2008 VW Rabbit with 60k miles that's worth about $9k-11k, depending if I did private or dealer. I owe about $7k still. Trying to decide if I should trade it in for something around $3k to free up cash flow, or just keep it. It's been pretty reliable, but is starting to need maintenance (needs belts changed and an electronics controller for $300+). Up to this point, I've been taking it to a dealership for all maintenance, but it's very out-of-the-way, so I'm thinking of taking it to an independent place locally if I keep it.
For what I'm seeing locally for $3k (2000 era or older, 100k+ miles), I can't help but feel like keeping my current car is a good deal. BUT, I only plan to drive it 5,000 mi/yr mostly by myself, it is our second vehicle, and I wish I didn't still owe $7k on it; the extra cash flow would be nice. OTOH, I don't want to deal with an unreliable vehicle.