Where mechanics' labor is cheap, used cars cost nearly as much as new cars. This surprised me too when I first observed it.

Most middle class families who can afford a car in developing nations rarely buy used cars/motorcycles. Giving the scenario in India. Vehicles are treated as a luxury here which are bought much later in a person’s life. Most families don’t even buy a car in India. It’s takes a lot of money to maintain it and it is very costly to drive one. The vehicle which you’ll find in every household here is a motorcycle and that too in mostly between 150cc-200cc engine range. The reason for that too is because lesser the cc, cheaper the bike, more the mileage.