Something to think about. This is the end of the year. The end of the month. Based on my experience there is not a better time to buy a vehicle because the dealers are anxious to clear these out of their inventories and to meet quotas that will increase their profits. The buyer has an advantage that he will not enjoy earlier in the month.

As most people know, this year we have a tax deduction for hybrids. Next year, depending on circumstances, there will be a tax credit. It would seem on the surface that it would be best to wait until the new year and that may very well be true. But consider that if you are trading in your old vehicle (as most people do), you are likely to get more for it today than you will Monday when they are starting off on a new year and with new incentives.

For example, right now Ford is offering on their F-150 pickups a $2,500 rebate plus a $1000 dealer incentive off of MSRP. That's $3,500 right now, right today. What will it be Monday? Don't know. The Hybrids currently have an incentive. Will it be available Monday and will the Hybrid you want be available then?

I know that there are hybrids out there for sale and dealers are cutting prices today. I've seen them on ebay. Will they be available on Monday at these same prices and with the same incentives? Maybe; maybe not. And will your own vehicle be worth as much on Monday? Maybe, but probably not. It is a year older and the values typically take a nosedive right after the first of the year. The bottom line it may not save any real money to put off buying that hybrid Monday than it will today plus you can take the tax savings in your upcoming tax filing and not wait until a year from now.

I've always found it easiest to shop (and I've bought 54 vehicles in my lifetime) by going to a reputable dealer who deals from the top of the deck. Just be up front. Don't make any offers. Just ask for the best deal they can give, look it over and then let them negotiate with themselves. Walk around the dealership, the lot and hang around a while and let the salesman and the sales manager and perhaps the owner contemplate that you are a genuine prospect and not a "suspect." You could tell them that you will deal if the price is right today. You might be surprised at what you will be told. You won't need to haggle and you can be out of there today with your new hybrid that you want anyway.

Of course, I could be all wrong. But I do know that my new 2006 Escape Hybrid is sitting in my garage because I employed just those techniques above. It was painless and I'm satisfied.

 

I am selling my 2006 HH in early 2006.
I wonder if there will be a 'crossover' tax credit for the secondary purchaser??

 

I believe these are limited to the original owner. And I think that a person can purchase more than one new one and qualify but don't hold me to it.

 

There is no tax break if you:

1. Are not the original purchaser

2. Sell your vehicle that year.