Jon Guzick of Yahoo Autos Interviews The One, The Only, Harry Douglas Of Car Concerns

To Buy or Not to Buy?
Model year closeouts can save you big bucks, but sometimes it pays to wait. By Jon Alain Guzik, Yahoo! Autos Editor-at-Large
2008 Audi A5One of the toughest decisions consumers face when buying a new car is deciding when to buy it, especially in late summer and early fall when the outgoing 2007 models share showroom space with the incoming 2008 models. The questions constantly asked are: When is the right time to buy a 2007 over a 2008? And how much actual cost savings is there on similarly equipped vehicles?



"There are a few things to look for when shopping at this time of year," says Isaac Bouchard, a sales and leasing consultant and author of NiceDrivz.com, a blog about car buying and leasing. "First off, find out: What are the major changes between the two model years? Like, does the vehicle have a whole new body style, or is it just a minor change? This is key. I have a customer who wanted a new GMC Denali. The differences between the 2007 and 2008 Denalis are fairly minor, but the savings on the 2007 model is in the neighborhood of $50 a month cheaper. Over a 36-month lease, that starts to add up." Bouchard says the average savings is around $2,000–$3,000 for comparably equipped vehicles. So doing your research pays off.


TOP CARS AT Y! AUTOS
» 2008 Mitsubishi Eclipse GT
» 2007 Honda Civic Sedan
» 2008 Ford Shelby GT500
» 2008 Scion tC
» 2007 Mazda MAZDASPEED3


But money isn't the only factor in the cost comparison. On new models that have undergone extensive retooling (like the 2008 Infiniti G37 coupe, which features an all-new and more powerful 330-horsepower 3.7-liter V-6 engine, has a redesigned body and underpinnings, and is an evolutionary step up from the already-iconic and well-performing 2007 Infiniti G35 coupe), the purchase can be an emotional as well as fiduciary decision.



For example, the 2007 Infiniti G35 6MT Coupe is $34,050 and the 2008 G37 Coupe Sport 6MT is $35,550. While the $1,500 base savings plus the amount the dealer may mark off seems like a big savings, it all breaks even in the end, as the 2007's resale value is less than that of the newer, vastly changed vehicle.



"Anytime there is a full change in the run of production or a major body style change, expect to pay between $2,000–$3,000 less for the previous style," says Bouchard. "The G37s are sold out for the first 3 months of allocation, so it doesn't really make a difference in price."



If you need to have the latest model, buy a 2008 model now, says Harry Douglas, host of "Car Concerns," a call-in talk show about buying and selling cars. "I tell my listeners to buy a 2008 versus 2007. The 2007 models are already in the wholesale books like 'NADA' with values thousands less than a dealer can sell a new 2007 for. Most 2008 models, on the other hand, are already hitting the market with big discounts and rebates. By far, if you want a new car, 2008 is the way to go."