Fair shakes: a used car can give you a lot for your money.(Cars 2001)(reliability)(Cover Story)(Buyers Guide)

A used car or light truck is often an excellent value. The key factor is depreciation. It's possible to get a two- or three-year-old model for 30 percent less than you'd pay for one that just came off the assembly line. At the same time, thanks to the great strides automakers have made in designing their products to last, a two- or three-year-old model still has most of its useful life ahead of it. Indeed, if reasonably maintained, it's likely to operate for 150,000 miles and beyond.

Other reasons to buy used:

Good prices. Prices of used cars, which outsell new ones by more than a 2-to-1 ratio, have been flat. One reason is the abundant flow of vehicles coming off lease. Only about 20 percent of leased vehicles are eventually bought by the lessee.

Reduced safety compromise. Air bags and antilock brake systems have been standard in most models for several years.

Affordable luxury. If your wallet says economy but your heart says high-end, buying used may be a way to get your dream car.

Cheaper insurance. Premiums are lower for theft or collision coverage, which is related to total replacement value.

How a car has been used or abused remains a concern. Because neither you nor a lender can be sure a used car was well maintained, there is more risk. One result: Interest rates for used-car loans are often higher.