I'm thinking seriously about buying a new '05 FEH (there aren't yet a lot of hybrid options at dealerships in South Texas, I need something larger than a sedan and I am a Ford fan w/an '03 F-150 and a '94 E-150), but have not yet committed to doing so either financially or emotionally (or whatever you call the new vehicle buying fever). On the one hand, I'm leery about buying something that will probably depreciate more than usual when I drive it off the lot, on the other hand the deal on a '05 should be pretty good. Any suggestions for a newbie/nervous consumer?

 

Any new car will depreciate a great deal in drive-off and first year depreciation. Is this '05 a new, never used vehicle? I just bought an '06 model from Jordon Ford in San Antonio back in March. It was one of two Ford Escape Hybrids they had on the lot. '06s are getting harder to come by down here, with the approach of the '07's (which are what you get if you order a Ford Escape Hybrid from the factory now).

It's a question you have to answer since you'll be making the payments on a new car.

 

Yes, it's a brand new '05 FEH. 65 miles on the odometer as of the test drive on Saturday. I guess a big question I have is is the '06 FEH a substantial improvement over the '05? And will the '07 be a substantial improvement over the '06 AND the '05? Of course, it's an endless cycle of such questions when buying a vehicle.

 

I'm not certain of the exact differences between '05 and '06 Ford Escape Hybrids, other than that Ford changed some of the options packages -- for instance, I don't think a sunroof was an option in the '05s, and certain things got bundled differently between the two model years. But if you like all the options in the '05 Ford Escape Hybrid you're looking at, those differences are moot. The engines, interior, handling, etc. are pretty much identical, at least for all practical purposes. There might be some very minor cosmetic details.

The '07 model is not yet published on fordvehicles.com so I don't know what options they're bundling with it, but all my reading indicates it will not be much different than the '06. Rumor has it the '07 Ford Escape Hybrid model year will be a "short run" in preparation for a total redesign in the '08 model. So if on the fence between '05, '06, and '07, the only real deciding factor beyond the vehicle's miles (my '06 had 72 miles on the odometer at time of sale, so you're definitely getting a 'clean/fresh/new' 05 model with that low of a mileage on the odometer!) is the cost to you in terms of purchase price and such. I am assuming the tax credit is available to you if purchasing a *new* (as the one you're mentioning sure seems to be) '05 FEH in '06; if it were used, you would not be able to claim the tax credit.

Have you taken a test drive yet? If not, do so -- it might help answer some of your internal questions/fears.

In terms of form, fit, function and such I couldn't be happier with our Ford Escape Hybrid. I liked the body styling and size of the Ford Escape gasoline-only model and had it in mind as my new car before the hybrid version came out. I then had the opportunity to drive a '05 Ford Escape Limited 4x4 while on vacation for 10 days in D.C., and both my husband and I fell in love with it. The hybrid is just as comfortable, stylish and well put together as the Limited, and the fuel economy, lower emissions, and technology make it heavenly. I highly recommend the extra expense for the Nav radio -- it's not just for the GPS functionality (I already have a $1000 portable GPS unit), it's for the energy data screens which both remind you and passengers "This is a HYBRID!" and their data helps you maximize your fuel economy by better understanding the vehicle and how it functions.

 

GeekGal, Thanks for all the info. I have taken a test drive. I'm used to driving an F-150 and an E-150 conversion van so the FEH was a bit small, but not too small. I'm sold on the idea of buying a hybrid, I'm not quite sold on the idea of taking the plunge right now. Does anyone out there know whether a new '05 FEH will qualify for some sort of tax credit? That's a question that I've yet to have answered. I've been to a tax credit Web site and the IRS Web site and, needless to say, didn't come away from them with any definitive answers.

Re: The NAV radio. It sounds like a great option but isn't on the '05 I'm looking at.

 

She did a pretty good job at answering the question and giving good advice, but I'm not sure she can answer this one.

Yes, it doesn't matter. Buy a new hybrid, get the tax deduction; it's not based on model year, but purchase year and model.

That's too bad. Many members bemoan after the fact not getting it, and it seems that all of who have it love it.

 

Go for it, I have an 05 FEH & I love the thing. Not having the NAV certainly wouldn't be a deal breaker for me.

I have a Garmin 2610 GPS unit which is far superior to the factory NAV & I still manage to get an average of 33 mpg without the energy display which is pretty good for a 4WD SUV in my book.

~John

 

I love my FEH '05 4WD.

Since an '05 is still on the lot, new, you should have the upper hand in negotiating a price. I would look up the KBB value of the '05, use excellent condition and low mileage, and determine what it would sell for if you were selling it.

Consider that your starting point (or maybe even below).

The dealer should want to sell this fast, and you should take advantage of it.

I, too, owned an F150. I like the Escape very much. We did lose a lot of room when we put our Grand Caravan out of service, but we got a luggage carrier for the top of the FEH, and we make do. (I only have that on the car for long trips.)

 

Regarding the tax breaks for buying a hybrid, I see a few terms in this thread being thrown around that are actually quite different.

Tax Deduction vs Tax Credit

Prior to 2006, hybrid vehicle purchasers could qualify for a tax deduction. Starting in 2006, hybrid vehicle purchasers could instead qualify for a tax credit. With a few exceptions, a tax CREDIT is much, much better than a tax deduction. Tax deductions only reduce your taxable income (assuming you are in the 35% tax bracket, that only saves you $0.35 cents for every $1.00 in taxes); a tax credit reduces your actual tax liability (saving you $1.00 for every $1.00 in taxes).

One other important note - I am not sure if purchasing a 2005 model year hybrid, after 1/1/2006, qualifies you for the new tax credit, or the old tax deduction (or if it maybe even falls into some loophole where it qualifies for NEITHER).

 

Im in a similar boat...local dealers have some 05's sitting around. Im 99% sure you can't get a tax credit. (I posted on this subject, but no one had a good answer) I also found out Ford is lowering the MSRP on the 07's by $1000 (believe that was mentioned in the forums as well), and they should be coming soon (anyone have a date?)

Anyway if you are going to buy an '05' new, I would want significant discounts to compensate for the tax credit, and obvious depreciation. I can walk in to most dealers and get invoice with a little haggling on an '06', so let that be your guide. Not sure how the supply/demand is in your area. But I figure if there are 05's than demand is low.