A recent article by Forbes points out that while buying new has its advantages, buying used ultimately will get you the better deal – even though used car prices have jumped more than 4% in the last year.

The biggest reason you’ll get a better deal buying a used car compared to a new car is the depreciation.  A new car can lose up to 50% of its resale value within just three years of ownership.  This means that a three year old car could cost at least half the cost of an average new one. With a used car the depreciation rate is much, much slower.

When buying a used car make sure to have a trusted mechanic check the vehicle out before signing any papers. You may also want to run its VIN through a title-search service, like Auto Check to make sure the vehicle hasn’t been previously wrecked or flood-damaged.

This top 10 list (in no particular order) of used cars is currently the industry’s best used cars, based mostly on results from the latest J.D. Power and Associates U.S. Vehicle Dependability Study of three-year-old models.

- Honda Fit – performs well, gets great fuel economy and is reliable

- Scion xB – delivers athletic handling abilities, powered by a 158-hp 2.4-Liter four-cylinder engine

- Ford Fusion – agreeable performance, comfort, and utility

- Ford Edge – five-passenger crossover offers a quiet and comfortable interior, V6 engine

- Honda CR-V – great fuel economy for its class, 2.4-Liter engine with 166-hp, and impressive safety features

- Lexus RX350 – best-seller in Lexus’ lineup and most popular luxury SUV in the industry

- Toyota Sienna – 3.5-Liter, 266-hp engine, offers all-wheel drive, and available seven- or eight-passenger seating

- Mazda MX-5 Miata – peppy, nimble, best sports car value among new or used vehicles

- Mercedes-Benz SLK-Class – performs well, comfortable interior, contemporary look

- Chevrolet Tahoe – top pick for a large and powerful vehicle for hauling and towing

With the exception of the Mercedes-Benz SLK-Class these vehicles are all available brand new, but for each of them there have been no major changes since the 2008 model from three years ago.

December 31 can be one of the best days to buy a car. So how can you be prepared to get the best deal?

The most important thing you can do is arm yourself with the right information.

First, you need to know that the end of the year is a special time for automakers and dealers. As automakers try to get their new car models into dealer showrooms, you may find significant year-end savings on older models. Many of these older models will have the same or similar features as the newer models, but yet be discounted to sell quickly to make way for new inventory.

Plus, many car dealers – and their sales teams – are trying to meet their yearly sales goals, which are often tied to financial incentives, so they may be more willing to work with you so that you both get what you want. This includes both new and used car sales.

If you're ready to buy a car, here are a few more tips we can offer to help you make the best decision:

1. Know what you can afford. Determine what you can afford to pay and how you plan to finance your purchase.
2. Research cars that will fit your budget. Identify cars within your budget. If it's a new car you'll be buying, visit the Research a Car section on CarLocate.com to find out the factory invoice on the car (how much the dealer paid for the car). Also, check into rebates. Auto companies often offer rebates and sometimes dealers will, too.
3. Establish your plan. Before you enter the dealership, know which cars you plan to look at and the price you can afford to pay, and then stick to your plan.
4. Take your time. If you can't reach an agreement with the sales person, don't hesitate to walk away. Take the time you need to make the decision that's right for you and your wallet.

Shop year end… shop smart… shop CarLocate.com!

Happy New Year!

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