I've been looking into 3D animations for the last several days, and many tutorials mention this application Xara3D. To be honest, this is the first time that I heard about this application. Did anyone here use it before? If so, do you recommend this? Is it easy to use? Can you create 3D animations using this?

I haven't ever heard of Xara3D, so it may not be all that great of an application.

The one thing I can suggest, is if they offer some sort of a demo, to just try it out and see for yourself if you like it or not.

I saw rotating logos done using Xara3D and they look good. One of downsides is that this application is pretty damn expensive.

Well $44.99 USD isn't too expensive as far as software goes. There are definitely many more expensive pieces of software out there...