|
It's that time of year when the airwaves and print ads are full of promises of big discounts on "leftover" 2007 model cars and trucks.
But just how big are those discounts? And what pitfalls may await a buyer who opts for a 2007 at a time when 2008 models are also jamming dealer lots?
Domestic manufacturers are likely to offer the best deals on 2007 models. This year has been quite tough on General Motors, Ford and Chrysler, while Toyota and Honda have enjoyed better fortunes.
Need a minivan? Chrysler is offering rebates of between $3,500 and $4,500 on its Town & Country vans.
Dodge is offering up to a $6,000 rebate on its Ram 1500 pickup.
Want a big, comfy -- if not exciting -- luxury sedan? Consider the $7,000 rebate on the Lincoln Town Car. If a Lincoln is a little too flashy, check out the Mercury Marquis sedan, which also carries a rebate of between $6,000 and $7,000.
 |
| Car loan calculator |
|
|
| |
Even the sporty Mustang is available with rebates from $1,500 and $3,000 on 2007 models.
Over at General Motors, there is a wide range of rebates on almost every 2007 model, ranging from $4,000 on the Cadillac DTS sedan to $5,000 on the Saab 9-7X.
If you have an absolute aversion to buying from the Big Three in Detroit, look to some of the slower-selling import brands. While rebates aren't as widespread, there are some deals.
Nissan is offering rebates of between $3,000 and $5,000 on its Armada, Titan and Quest. In the fiercely competitive full-sized pickup market, Toyota is offering up to a $3,000 rebate on its Tundra.
If you choose to bypass these rebates, you can often get alternative low-rate financing. But in almost every instance it's better to arrange market-rate financing and take the rebate.
What else should you consider when weighing whether to opt for a 2007 or a 2008?
First, how long do you keep a vehicle? If you tend to trade cars every five years or less, you should probably pass on a 2007 vehicle. The reason is that the 2007 model instantly becomes a year old when you close the deal.
If you keep a car for more than five years, that big hit in depreciation will eventually fade -- in 2013, the difference in price between a used 2007 and a 2008 vehicle will likely be about $1,000, which today's rebates more than offset.
Another factor to consider is how much the vehicle changed from 2007 to 2008. A lot of 2007 model vehicles -- such as the Ford Mustang -- are pretty much unchanged for 2008. Years down the road, the value difference between 2007 and 2008 Mustangs in comparable condition could be minimal.
Bottom line: Now may be a good time to buy for smart shoppers who don't care to have the latest model and are looking for the absolute best deal.
|
| This week |
|
|
|
|
