Used Cars: New vs. Used SUV, tooth comb, mazda protege

Question
I'm looking for a slightly used or a new SUV and I wanted to know if you could point out some of the pros and cons.  I was also interested in finding out what is meant by dealers placing a 2007 vehicle in a "new" category.  Is there drop in the price as there is in a used 2007 vehicle?  I'm looking for something relatively cheap like an Escape.  I plan on putting down between $4000 - $5000 and my credit scores are:  693, 704 and 721.  I have a dead 1998 Mazda Protege to trade in as well, the transmission is no good on it.  Do dealers give rebates and/or incentives on "new" 2007 models?

If there's anything you can think of to help, please let me know.

Thank you

Answer
Well the biggest thing to remember in the difference between new and used is simply this.  If a vehicle is NEW, you will take a severe hit in depreciation the first year, as with a slightly used one, somebody else has already taken the depreciation hit.  I personally would prefer to buy a slightly used vehicle, realistically you should save thousands of dollars, and with your credit situation appearing to be pretty good, you should not sacrifice to much on rate, vs. what they offer on new vehicles.  It is possible that there could still be a NEW 07 model out there, and they do have a lot more incentives than most of the new ones in general.  But if you are buying a vehicle like that make sure and check the options out with a fine tooth comb, there has to be some reason why that vehicle has not sold in 2 to 3 years.  I have sold fords, and the escapes, good vehicles, but if you could find a year or so old one, that is still within factory warranty, I would choose that over a new one.  If you possibly narrow your two options down to a brand new one, and a slightly used one, figure out what the interest rate that you could get on the used one, and put a pencil to the payments and see what you will be saving buying used vs. new.  I hope this is helpful to you and if you have any more questions, feel free to hit me up again.
jay