More families than ever need two cars. Some want a back-up with lots of seats, so they buy a people carrier. For others their environment demands a four-wheel drive. But for many, all they require is a cheap, reliable family hatchback that’s not going to cost an arm and a leg to run.

If that’s you, you’ll be confronted with a huge selection of new cars for as little as £9,000 or as much as £18,000, and all will do the job nicely. But the biggest problem with buying a new car is depreciation, and the more you spend the bigger the problem tends to be.

After three years most cars are worth about a third of what you paid for them new. Depreciation like that translates into a loss of between £6,000 and £12,000 from the value of your second car.

So how about something that will cost only £1,000 a year in depreciation? It comes with air-conditioning, twin front airbags and you’ll be able to enjoy your latest CDs on the stereo. Meet the second-hand Ford Mondeo.

In 1999 a new Mondeo 1.8 GLX had a list price of £16,000. Today, with 50,000 miles on the clock and a full service history, you can buy one for just £4,000.

Second-hand Ford Mondeos are cheap, but not because they are bad. They are cheap because there are more cars than customers. And there always will be, because Ford is not interested in how many Mondeos we need, just how many it needs to build and sell to make a profit.

Oversupply translates into low second-hand prices. Just think about it: with the thousands of pounds you will save in depreciation you can buy tank after tank of petrol, or pay for your insurance and servicing for the next three years.

Nor must you make do with the 1.8, just a few hundred pounds more will buy you a 2 litre model or even a 2.5 litre V6. Even the extra fuel costs and higher insurance premiums won’t take too big a bite out of the pile of cash that you’ve already saved.

Don’t worry about your Mondeo being unreliable, either: they are well made and have good specifications. The sheer numbers of cars that Ford builds ensures that problems are corrected before too many owners complain. And if you want belt-and-braces security, buy a car from a Ford main dealer, slap on an extended warranty and join a breakdown and recovery service.

For a few hundred quid extra you will have new-car peace of mind for used-car money.

What’s more, if you’re worried what the neighbours might say about your buying a used Ford Mondeo, with all the money you’ve saved you could buy a personalised numberplate and tell them it’s a new car. Or book a foreign holiday so you don’t have to see them for a couple of weeks.

Points to remember
Economy 1.8 petrol cars will give 30mpg plus in mixed driving, 2 litre diesels will top 40mpg
Load luggers Estate cars are truly cavernous but check the rear suspension, many will have been carrying very heavy cargo
Brakes Antilock is standard on all models
Size matters Avoid the 1.6 litre model, it's underpowered and no more economical than the 1.8
Air-conditioning Standard on all models after February 1998
Limited editions Many special models have alloys and metallic paint as standard
Service history Over 80% of new Mondeos are sold to companies, but don't be put off as long as the service history verifies the mileage
Diesels Latest 2 litre DCi (introduced in November 2001) is a massive improvement over the old oil burner
Beware thieves High-performance models such as the ST200 are a joyrider's dream. Get an HPI check on the car if you are buying privately and walk away from a stolen/recovered vehicle even if it seems very cheap