Tips on Buying Cars: New vs. Used, mazda protege, miles per gallon

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
A vehicle is considered new as long as it hasn't been titled, ie, it's still in a dealer's inventory.  Although unlikely, a dealer could still have a 2004 that's "new," as long as it has never been sold.  So, a new 2007 is still going to sell for more than a used one, but you should get a better price and a much better rebate/ incentive on the 2007, as the dealers have 2008s rolling in.  With some careful shopping and planning, I would think you could get a great price on a late-model used SUV; with gas prices climbing, people tend to "panic" and want to sell something that isn't achieving 40 miles per gallon.  It's well worth looking at new and used before making the final decision.