By A look at what's new for '03 model year
By Robert Hammer & Stefanie Kelly
It’s that time of year again: out with the 2002 models, in with the 2003s.
As early as spring, automobile manufacturers begin sending new model vehicles into the marketplace. By late summer and into fall, next year’s models are commanding consumer attention while the previous year’s models begin languishing on dealer lots.
Not coincidentally, around this same time dealerships begin offering aggressive consumer incentives in order to move last year’s models and make way for new merchandise. If you know what to look for, this can be an advantageous time to buy or lease a new car.
Here is a look at some of what’s to come for ‘03, along with a few tips on bargain-hunting in the model year transition period.
The first thing to consider is whether any design aspects will change with the new model year. In many cases, the changes are so minor that last year’s model is virtually identical to this year’s. Minor modifications such as relocated controls and cupholders, upgraded key functionality and rearranged instruments are relatively insignificant to consumers whose priority is saving money.
Sometimes manufacturers reconfigure options and equipment packages, and this affects the bottom line. For example, Lexus Link is standard on the ‘03 SC430, and at $2,269 more than the ‘02 model, the vehicle’s MSRP reflects this upgrade.
The 2003 Mercedes-Benz E320 and E430 (now known as the E500) have completely new bodies, as do the CLK-series coupes. The CLK cabriolets, on the other hand, will not see any body changes for another year.
Additionally, there are significant changes for the ‘03 Honda Accord coupe and sedan, both of which have been completely redesigned, and Chrysler’s plucky but underpowered PT Cruiser gets pepped up with a new GT model.
Infiniti, which has had tremendous success with its G35 sedan, is releasing the G35 sport coupe for ‘03. This sleekly designed 3.5-liter V-6 is slightly larger than its sister, the new-generation Nissan Z car, and will produce nearly as much power. The much-anticipated 350Z should be on the street by the time you read this.
Audi’s 450-hp RS6 sedan is another exciting newcomer, as is Volkswagen’s long-awaited New Beetle convertible. With its unconventional exterior styling, BMW’s Z4 - which replaces the Z3 roadster - should be only slightly less controversial than the new 7 series, which expands for ‘03 with the addition of the 760Li super sedan. And Volvo enters the SUV class with its promising XC90.
If newfangled is not your concern, or if the vehicle you are considering has no significant design changes for the new model year, ask yourself how long you will keep your new car. If it is destined to become a family heirloom, depreciation and resale value will not matter to you. In this case, you will benefit from manufacturer rebates and other incentives that make the previous year’s model a terrific deal.
The newer model will always have a better resale value, generally $2,000-$3,000 higher than its predecessor. So if you expect to sell the car within a few years, weigh this advantage against the higher initial price tag.
It is worth noting that lease rates generally are significantly lower on outgoing models during late summer and early fall. For example, in August effective interest on BMW lease rates ranged from just under 5 percent to around 6 percent on 2002 3-series sedans and coupes. Dollar-wise, total payments for consumers who lease 2003 3-series vehicles will be substantially more.
One way to get a good deal without sacrificing what’s important to you in a new car is through an auto broker, who should be able to advise you on all model changes.
Hammer and Kelly are associated with Hammer Auto, a new car auto broker in Palo Alto. For more information, call 813-6100 or visit the Web site at www.hammerauto.com.
