My dealer will sell me a 07 civic hybrid for $20,800 with dealer cash.
But is it worth it to tell them I'll pay invoice for a 08?

 

No.

 

That means $600 more for an '08. If it is worth it or not is up to you - essentially the same car. If you switch vehicles often, or even every few years, it may make sense. If you plan to drive the vehicle forever, it makes no difference.

The 2008 does have TPMS...

 

no

 

but I would think you would take a depreciation hit (not sure if the purchase price covers that). An 07 will be worth a few grand less than an 08 (and maybe more if it is a hybrid) on trade-in/re-sale.

 

You are gaining the following on the 08 hybrid

TPMS - tire pressure monitoring system, standard on all 2008 cars and trucks this year
Better resale value if you want to trade it in a few years from now.

You should be able to get a little more out of the '08, if Honda meets or exceeds 60,000 vehicles, you are not going to get the full $2100.00 tax credit.

 

I think the tax credit phase out has more to do with the date you buy the car, not the model year. So far, there's no phase out underway for the Honda brand, in contrast to the Toyota brand.

However, the IRS hasn't come out with the total available tax credit for the '08 Civic Hybrid . The $2100 figure applies to the '07 HCH II.

Dan
(Not an tax accountant)

 

The IRS did a month ago.

http://www.irs.gov/newsroom/article/...174788,00.html

 

You shop a little harder. I got my 07 HCH w navi for 21,600 brand new.