People buy cars according to their needs and preferences. Their decision wherever to buy a cheap or expensive car will depend on their budget. Usually only mechanics can buy broken and cheap car somewhere on auction and then make it run. Other people usually do not do it because sometimes it just does not worth to repair a cheap piece of junk. This is basically because they have a potential risk of paying more than they would buy used but working vehicle from an owner.
Usually the more money you pay for your car the more you will lose with time because of depreciation. On the other hand, if you buy a least expensive vehicle then when you will want to sell it, in most cases, you do not gain or lose anything because this car almost did not have any value initially when you purchased it.
However, if you decide to go with a cheap option of an auto then you might face other problems, such as frequent repairs for your own money which might be overall even more than you paid for the car. In addition to paying extra money for that you may have to go to the body shops often and spend your time there as well. Plus you should be prepared to have some surprises, such as your vehicle might not start in some winter mornings or stop on the middle of highway which may cost you lots of money for towing. Moreover, not all insurance company may accept you with a very cheap and not reliable auto.
Of course, it is no guarantee that your new expensive car will not have any problems, but at least you will have some coverage for that. Plus, it is not for sure whether you can stay with a good insurance firm even with a new vehicle because you might get in some accidents a few times in a short period of time and they may kick you out for that by saying that you used up all your limits already.
Other thing to consider is that an expensive vehicle normally will have more inside car accessories than cheap one. Usually all new vehicles have lots of different and cool inside things that you might not even think of. There are so many of them from dash kits to pet travel accessories to keep you animals safe and clean while taking them in a trip.
The bottom line is that you will normally get what you paid for. Therefore, car owners should decide for themselves whether they want to buy cheap vehicle that will not lose value, but perhaps cause lots of problems or pay for expensive one and have some peace of mind.