Need 05 vs. 06 Purchase Advice

It's hard to say, since I already have my 05. I'd probably buy whichever car I wanted. Noone here can make the choice for you as we don't know enough factors. Financial situation..etc. If you really wanted the features of the 06, but the extra savings would make a huge impact in your life, then I'd get the 05. If the extra money makes little difference, then I might go with the 06.

 

You've got all the facts lined up... it pretty much comes down to _your_ decision.

How much is the depreciation worth to you -- do you plan to sell/trade your car in a few short years? How much would it cost to add an aftermarket auxilliary input and camera to an '05? How much is having those features from the factory worth to you?

If it all comes out to less than 2200, you might save a little cash and get your enjoyment sooner if you get an '05.

Personally, I'd question why the value of your trade-in varies based on the model year of car you're *buying.* That sounds fishy; either it's worth $12K to them or it's worth $13K -- no "ifs" about it.

 

You might double check with an accountant to see exactly what the net impact of the tax credit will be in your situation. Running 2004 TurboTax and assuming the effect is similar to Form 8834 may not lead to a correct assumption.

That said, for most people the differences between a 2005 and a 2006 are not significant. If you haven't done so already, go through the 2006 threads to see what the differences are and if they are important to you.

All things equal, a later model year will have higher resale value, but if you keep the car for a few years, any difference will not be significant.

John

 

I just bought the 05. I thought about waiting for the 06 but didn't seem that much upside. They are basically the same vehicle and the list for the 06 is probably very long already.

 

lee - My accountant said that a tax credit comes off the top of your tax bill, and is usually figured out before AMT is figured. He didn't think this law had an exception to that rule.
I am waiting for an 06. I like the leather and the upgraded nav, and am willing to pay a bit more to get those, while the ipod jack and camera are nice too, but if those were the only changes, i wouldn't be waiting.

 

in YOUR situation, i'd get a 2005 tideland, package 4. in a second. you aren't planning on selling it, and you are saving 3k. if you honestly don't care about the added accessories then you've got yourself in a fairly good situation.

If, on the other hand, we're wrong about AMT pretty much all the way through, then you've got a more difficult decision. pending further information, try to get a 2005. you may find the decision has already been made for you.

 

What's AMT?

 

I disagree. If you run the numbers of some '04 vs. '03 vs.'02 Priuses from Kelley Blue Book, other things being equal, the difference in model years WILL be---close to that $2500 range. On the other hand, since it's not a big model year change, a not-so-astute private buyer, especially if the Prius market is still inflated, may be willing to overpay (depending on the car's shape/mileage).

And the dealer is OBVIOUSLY giving you a $1000 discount on the '05. And that's nothing to sneeze at. It's really the key to your overall calculation.

You have (to me) a very 50-50 decision, if other data is correct. Then, for me, it would come down to color---and whether I'd feel any buyer's remorse when I saw all those chromed grille pieces when I passed '06s.

 

Based on these two statements:

Take a look at http://priuschat.com/2006_toyota_prius.html and there are many other places to research also.... there is belief the NAV screen will be higher quality too...

I tend to feel if you were going to keep it a short time.. get the 2005 and then upgrade when your ready to the latest and greatest.... that may be a nice option to consider?.. Just sell your 2005 "before" the end of the whatever year... the demand drops dramatically once the new ones are close or out.

But if "like you say" you will keep it a long time... the added amenities and quality will be enjoyed over the years and you may regret not getting what you really really wanted.. irregardless if the price wasn't as sweet.

Since the tax credit is not an option... ignore it exists and realize thats its normal for later model cars to cost a bit more than the previous year.

If you know yourself and you dont' think you will always regret it and the added amenites are no big deal to you, then.. 2005... And if its all about money... the best deals are usually right before the new ones come out?

Me myself.. I try to get what I really want.. even if it stings..... I never ever look back and wish I would have gotten the lesser later! Especially if its something I will keep for a long long time.. like a gun, watch, etc...
But thats just me......

 

So does that mean that the 06 will or will not have the rings?

 

As the other post indicated, if we are talking about several years ahead, at that point I don't think there will be much difference in resale value between the 05 and 06.

As far as those chromed grille pieces, as someone said you can probably order them - I generally don't think the cosmetic changes are necessarily improvements, just changes. Plus good options for aftermarket leather - bottom line in my opinion the changes are not significant.