Tips on Buying Cars: New vs. Used SUV, program factors, 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
Hi Landon

1) Placing a 2007 vehicle in a " new " category will be  brand new or a vehicle thats been a demo with mileage on odometer but has not been registered, when vehicle is sold it's then registered to the buyer and thats the date the Mfg's warranty starts, it's called the "in service date"

2 ) As for a drop in price buying a brand new or demo 2007 model compared to buying a 2008 model that is a question that will require some homework on your part.

3 ) If I was looking to buy an Escape 2007 or 2008 the Mgf's Incentive program factors will play a major role in my decision " example " the 2008 model may have a zero finance program compared to the 2007 model where you have to pay Interest, or a lease program along the same lines.
Also take into consideration the depreciation factor vehicle being one year old when you take delivery, again its an area that requires study to get the best value for your bucks.

4 ) You mentioned slightly used, a brand new vehicle can depreciate up to 30% the first year from the total you paid out the door and that makes buying a used vehicle that has been registered very attractive as the depreciation now will only be about 10% for the next few years, as for your Protege sorry to say its worthless and will not become a factor in the deal.

I have a website   http://www.usedcartips.org/  it will help you along buying a vehicle and have answers to many questions, study the site and if something not clear in your mind feel free to make contact through my website address.

Hope this helps

  Ray