Top Five Best Used Cars

If you didn't get in on Cash for Clunkers, count yourself lucky to not have wasted money on a new car.  Statistically, cars lose 15-20% of their value every year or two.  As soon as you drive it off the new car lot, the retail price you paid drops immediately to the dealer's wholesale price.  That's like a $3,000 joyride.  Since your car will always lose value (unless it's a legitimate classic) it is an expense, not an investment, as people seem to think.

In light of this, you need to make the best financial decision possible when it comes to cars.  You can still have reliable transportation driving a pre-owned automobile, despite what your neighbors say.  (And there's no rule stated that new cars never break down.)  Check out some of the top used models rated on reliability, safety, and availability.

Compact Sedan*
Before you start mocking Hyundai, you need to know this make has experienced a revolution in the last several years.  They are quickly catching up to the competition and have a good, solid product.  The Elantra, reswizzled in 2001, has a great feel on the road with some fun extras and superior safety ratings.  Definitely select a model between 2002-2007.  You can score one for between $4,000-$10,000 depending on mileage and condition.  Don't ignore the Toyota Corolla as an attractive option as well.  With a myriad of options depending on year you can purchase a smaller, reliable, and solid car for thousands less.

Midsize Sedan
Long have Honda and Toyota thrashed the competition here.  The Accord and Camry, respectively, are solid, reliable cars that run in top shape forever.  You'll pay extra for the nice handling, but they are definitively the best, without question.  The Hyundai Sonata and Kia Optima have put up a good fight in recent years, but as an owner of a ten-year-old Accord that has never needed more than an oil change after 125,000 miles I've come out far ahead financially by paying a bit more up front.  You're also solid with any 2002-2007 Camry.

Minivan
Again, Honda is the forerunner in used car performance.  With a powerful V6 engine and spacious interior, you'll ride in style new or used.  And yet again, you'll need to shell out more for it.  But taking into consideration long-term usage and repairs, sticking with Honda is a good financial bet.  

SUV
If you need quite the space of a Chevrolet Tahoe, you can get away with paying a lot less for the Mitsubishi Endeavor (2004-2007).  While it doesn't include third row seating, it's definitely roomy enough for the standard family with 2.5 children.  It has nice, car-like handling and earned top ratings for crash tests.  It's a lost less expensive than others in the midsize range.  Take a step up to the Tahoe if your household needs more space.  

Truck
I'm not a huge Ford fan.  Call me un-American, but I was saddled with an early 90's Taurus for several years and driving a tin can is not my thing.  When it comes to trucks, however, few are built Ford-tough like, well, Ford.  Competition can't seem to touch the F-150.  It's had a comfortable interior and smooth ride for decades now and doesn't look to be going anywhere.  For towing, hauling, or cruising, the F-150 won't let you down.

*See Edmunds, Consumer Reports, and Consumer Guide: Automotive for more details.