I just looked up in kbb.com for a 2001 Volvo S60 with 128K miles in good condition.
It reported the vehicle is worth:
- $539 average trade-in value to a dealer
- $1354 average value for a private sale
If the condition is very good instead of just good, it only adds about $200 to the value of the car.
If you buy that car for $3700, then
- Someone is making a nice profit
- If you get into an accident and total the car the next day, you will have lost about $2700 instantly, since the car’s value was only in the $1000 range.
If it were me, I’d see this purchase as a risk (because it could be a money pit w/repairs), and as an overpriced car. And I’d keep looking.