In the world of car makes and models, 2012 has already started. This can mean lots of great deals for many models, but it’s hard to know for sure. Navigating through different manufacturers’ multiple 2012 model release dates can be tricky. To help simplify it, here’s a list of scenarios to consider when deciding which model year is the right buy for you.
Three reasons a 2011 model IS NOT a good deal:
1. The 2011 model is no longer available. This may seem obvious enough, but I still get emails nearly every day from customers looking for cars that have been sold out for months. Before becoming attached to a 2011, make sure to ask around about inventory.
2. You want to lease a 2011 model. A big chunk of your lease payment will be based on the residual value. So don’t automatically assume that just because dealers want to get rid of 2011s, you’ll get a better lease deal. More often than not, you won’t.
3. The 2012 model is a major upgrade. About every five years, most manufacturers release an entire new body style with many noteworthy upgrades. If you buy a 2011, you’ll eventually see more and more 2012s with these more advanced features. You may regret the savings when you imagine life inside that 2012 – maybe you could’ve had Bluetooth, live traffic, sportier suspension, etc. To avoid regrets later on, do your research up front.
How do you check whether a new body style is around the corner? Manufacturers often release a “Special Edition” or “Value Package” vehicle in the final year or two before releasing a new body style, to help move the older units. These packages may offer an exceptional value, especially on leases when the rates and residuals are most competitive before the new model year comes out.
Three reasons a 2011 model IS a good deal:
1. You want to buy a car and plan on driving it for a long time. Sure, the residual value may not be as good in the end. Then again, manufacturers usually throw in APR specials, rebates, and dealer cash offers to help dealers clear these cars out.
2. You’re upside-down in your trade-in, and you don’t have a lot of money down. This could work in a lease or finance situation. The 2011 models’ extra-low selling prices (through dealer incentives) can work in your favor, especially when the dealer tries to get the lease or loan approved with little or no money down. Here’s why: Let’s assume you owe $4,000 on your trade-in, and the market on 2012s is $500 below MSRP, but the market on a 2011 is $3,000 below MSRP. In a situation where the lender has a LTV of 120%, for your credit you could easily bury your negative trade equity in the 2011 with little to no money down.
3. You love everything about a particular 2011 model. Say you like the ample availability of research information on reliability and safety of a certain 2011 model. If the 2012 model includes major changes, you run a slight risk of more bugs and recalls.
If you’re considering multiple cars, the model-year dilemma becomes more complicated. Picture trying to get information on the best deals for multiple years on multiple models – that’s several different salesmen on several different cars, likely giving you seven different answers. One of the great things about CarWoo! is that it simplifies these answers. You have one unified portal relevant to your desired vehicles. So, even if the cars are different and the model years are different, the answer is always clear.