Canny used car buyers who brave dealers' chilly forecourts during the run-up to Christmas could make savings of around 5% on many popular models.

Amid increasing fears of a house prices slump and poor Christmas retail sales, now may not seem the obvious time to go shopping for a car. But by bringing forward their purchase by a couple of months, buyers could bag a bit of a bargain. Following weaker demand for used models during the last month, even popular two- and three-year-old family cars such as Ford Mondeo and VW Passat are 10-12% cheaper in real terms than they were this time last year.

Family favourites

Bargain family favourites are '51, '02 and '52 plate ex-fleet medium models with 40,000 to 60,000 miles on the clock. Most retailers will listen to offers on less popular stock like Citroen C5, Nissan Primera, Peugeot 406 and Renault Laguna. Used prices of these have tumbled by up to 10% recently - that's £750 to £1000 on a typical one- to two-year old mid-spec car.

Some colours cost less

As well as making savings in a depressed used car market, there are also a couple of considerations that can save you money now, and in the future. It may not be your first priority, always consider the colour of the car you're interested in. If you're prepared to haggle, you could save up to £500 by opting for a Mondeo or Vectra with dark blue or brown paintwork rather than the more common metallic silver. But do remember, if brown isn't popular now, it's unlikely to be in fashion when you come to sell at a later point.

Running costs are not just for Christmas

Never make a decision based only on a low forecourt asking price. People carriers such as the Chrysler Voyager, Citroen Synergie, Kia Sedona, Mitsubishi Space Wagon, Peugeot 806 and Renault Espace have all seen big decreases in values in 2004. But running costs are higher for thirsty petrol-engined versions. For example, a diesel Sedona 2.9 CRDi can give 36 mpg, while a petrol 2.5 V6 auto version averages only 23 mpg - that's an extra fuel cost of nearly £600 over 10,000 miles - so make sure you choose the most appropriate model for your motoring needs.

Cheaper people carriers

Used prices for people carriers have dropped by as much as 12 per cent since October, with the now-obsolete Citroen Synergie and Peugeot 806 looking particularly cheap. 1996 2.0 petrol versions can be as little as £3500 (although reliability can be an issue at this age) and a tidy, economical three-year old 806 2.0 HDi turbodiesel can be bought for well under £10,000. Top marks for style and status go to the Chrysler Voyager; prices start at around £11,500 for a 51-plate 2.4 SE petrol model, with a 2.5 CRD turbodiesel fetching at least £1500 more.