I picked up my 20vt4 for 1400 euros with 81k miles and a blown 3rd gear.
It's not that they don't hold value, I mean it is an 17 year old Seat.
It has more to do with here in Germany if the car needs mechanical work and doesn't have "Tüv" inspection approval then its value shoots waaaaayyyyy down. More of a law and culture thing. Germans want to buy cars that already abide by the law and they don't have to worry about inspection. Buying a car in Germany normally comes with a 1 year guarantee even on the used market, obviously with a car with no TÜV that would be disregarded. They don't like that.
true, i got mine with tuv inspection. and even after import im still 2 years free of inspections. in holland its unknown. only for new cars.