Mines not too shabby, everything works and besides the paintwork (which isn't terrible by any means) it's very decent. (Mind you that's not to say I wont break another engine mount tonight... but that's more about the driver than the car :P)
In reality though your right, they are getting old and neglected (or crashed). Last time I looked at "something cheaper" it wasn't all that much cheaper anyway, then factor in buying and selling and the big "what if" there are issues with the new ride... evil you know and all ;)
Stick with the re finance if you can afford it.