Okay so as an update, our friends who visited mentioned selling their car. It is a 1998 Subaru Impreza with 125k miles. According to KBB, it's worth $4k maybe. We are very interested in the AWD and we know them very well, and know it's been well maintained. So this is not your typical used car.
If we sell DH's 2000 Ford Focus, according to KBB it should be worth $4500. This move sounds like a lateral move financially. But is it a smart move financially?
Should we buy an older car? I think it's a better car than the Focus, but it's a tough choice. We have until this spring to think.