What you're talking about really varies. Here's an example that illustrates how we can both be right. If you get a 1993 Ford 7.3 IDI with the upgraded turbine housing, you'll get the same power as a stock 1995 Ford 7.3 DI. Either one is cheaper to deal with than a Ford with a 6.0, which is a more powerful truck than either one... but which needs a whole mess of the same stuff the 7.3 needs to be reliable, plus some other magical stuff related to the fact that the 6.0 has a true head-up-ass design. However, if the 1995 goes south on you, you're looking at enough money to buy the 1993 in parts alone. It takes a whole bunch of research to even figure this stuff out.
Further, you're forgetting the cost of dealing with a used car. If you need to get to work and the car won't get you there, that can conceivably cost you a job. That's more expensive than buying a better car.
Anyway, I've never bought a new car and I buy everything without credit, but I still think you've grossly oversimplified the situation in a way that blames the victims. Sure, there's people going into debt for status symbols, they're their own worst enemies. But I've also seen what trying to save money on a car can do to you when you're not a mechanic. You'd better think about buying two of those older used vehicles...