Conventional wisdom says that, on average, a new car loses 20 percent of its value the moment you drive it off the dealer's lot. So when times are tough and money is tight, it makes sense to shop the used-car market and be on the winning side of that depreciation curve. I asked Jody Victor to tell us about the best used vehicles the past has to offer you.
Jody Victor: While new cars never lose their luster and appeal, a used vehicle might fit your budget better. Here's a list of the ten-best in two parts from msn.com.
Hyundai Elantra - A new Hyundai Elantra is a bargain starting at $14,145, but a used Hyundai Elantra is an absolute steal. A 2007 model, for instance, can be bought on the friendly side of eight grand, gets 27 mpg and is a roomy, well-finished car. Second owners are covered under the 5-year, 60,000-mile warranty unless they buy through Hyundai's certified pre-owned program, but that can tack a few thousand dollars on to the price.
Honda Accord - No surprise here. Honda's Accord has long been respected by the auto press and for good reason. It consistently scores high on the J.D. Power and Associates long-term-dependability studies, and it maintains a high resale value year after year. Plus, a 2007 Accord's cost-of-ownership estimate comes in about $100 less than that of a Corolla, despite the sticker price being over $1,000 more.
Mercury Montego - This was the Ford sub-brand's version of the Five Hundred, which was Ford's temporary replacement for the Taurus. Both the Five Hundred and Montego were produced from 2004 to 2007. The Montego had available all-wheel drive and the highest safety ratings of any car in its segment at the time. A fully loaded 2006 AWD Premier with continuously variable transmission, for example, can be had for less than $13,000. A 2006 Limited Ford Five Hundred with CVT and AWD, by comparison, lists for $13,403 - and, remember, it's the exact same car.
Honda CR-V - The CR-V is affordable yet spacious for a small SUV, and has a gleaming reputation for quality. Since the 1990s this 4-cylinder ute has offered a winning combination of a car-like ride and truck utility, while still posting respectable fuel-economy numbers. This vehicle depreciates slowly, which is part of its appeal, but the sweet spot on price seems to be the 2005-2006 model years, where the CR-V (which retails starting at $21,545 new) can be had for between $11,200 and $16,100. Before 2005, however, I'd recommend sticking with EX trims, since base LX CR-Vs didn't come with anti-lock brakes.
Toyota Highlander - This on-road-optimized crossover SUV also tops dependability and resale ratings. In fact this may be one of the few vehicles that are better purchased used than new, since the 2008 through 2010 models are affected by the current recalls (although the 2008 and 2009 models are affected only by the floor-mat recall). The Highlander had been available since 2001, but if you're looking to pack in people, start your search with the 2004 model, when Toyota introduced third-row seating and stability control.
Thanks, Jody! The last five next time!