> This doesn't explain why the used car market is full of very cheap cars like the Honda Fit for much less than a new SUV.

Is it really? Just to check I looked at carmax and found this kind of price:

2016 Honda Fit LX $16,998* 26K mi

You can get cheaper ones in the $11k range with like 110k+ miles on them, is this really a meaningul price difference?