Owning two cars was ridiculous for us. My husband teaches at a boarding school and I work from home! We only drive to the grocery store and if it's raining, the YMCA. (I could personally walk in the rain... but I don't have a rain cover for my stroller.)
But we kept two for a long time because we (mostly my husband, whose main car it was) didn't think of selling the "good" car, the '07 CRV. And the '99 Accord is cheap to own--hardly costs anything to insure, low taxes, no major mechanical problems, etc.--so there was no point in selling that one. But we finally took the plunge and sold the CRV! We still owed a bunch of money on it, but we also had a lot of equity, so we get to wipe out both the car debt and my student loan debt in one fell swoop! I'm really proud of Mr FP for giving up "his" car and not giving in to "tiny detail syndrome." (The Accord has no MP3 hookup! You have to actually put the key in the lock to open the doors! Oh, the horror!)
When the Accord wears out, we'll probably get a hatchback, but a small one (maybe a Fit)--and hopefully that's several years away. And it won't be financed.