By Colin Yong

WAIT FOR A new model to arrive or go for the last of an existing design – this is a decision many car buyers today have to make.

There will always be a group of people who must be seen behind the wheel of the latest model, but there are many others who just want to get the best possible deal on their purchase. For these buyers, a run-out model – one that is about to be replaced – can make a whole lot of sense.

For starters, a car is usually cheaper to buy later in its life cycle for a couple of reasons. The manufacturer would by then have amortised the cost of research and development for that particular model, so its Open Market Value (OMV) – the base cost to the local distributor – could be lower than when it was new. This is significant because government taxes like the Additional Registration Fee, Excise Duty and GST are calculated based on a car’s OMV, so every dollar increase in OMV leads to the selling price going up by more than $2.30.

As an example, LTA’s figures show that Nissan Sunny 1.6 EXs registered last month had an average OMV of $11,637, almost the same as that of the Thai-made Toyota Vios although most buyers would reasonably expect the latter to cost less. This enabled Nissan distributor Tan Chong Motor Sales to sell the car for a very competitive $47,000 with COE.

MORE FOR YOUR MONEY
Distributors may also pack extra equipment into run-out models to make them more attractive. Honda distributor Kah Motor, for instance, started fitting xenon headlamps as standard to the outgoing Civic model a few months ago which, according to a source within the company, gave sales a useful boost. The car is still selling steadily despite the fact that its replacement is already on display in Honda showrooms.

Buyers could be snapping up the car because they know it’s the last chance for them to own a 1.6-litre Civic – the new model will only be available as a 1.8 or 2.0, and the City will be Honda’s only four-door sedan representative in Category A.

There are other good reasons to buy a car that’s been around for a while. It’s likely to be very reliable since the manufacturer would have had plenty of time to sort out any design flaws or production problems that may have been present at the beginning. Also, it should be relatively easy to get feedback on important aspects such as fuel consumption and long-term build quality from existing owners.

ARE THERE ANY DOWNSIDES?
These plus points must be weighed against some negatives, though. Car safety technology has been improving rapidly over the last few years and older models are unlikely to have the latest active and passive safety systems. They might also be less fuel efficient than new cars with more sophisticated engines.

But in the end, purchasing a run-out model can perhaps be likened to picking up last season’s clothes at a great price. If it fits well and looks good on you, who’s to say it isn’t a good buy?

STILL GOING STRONG
6 run-out models that should be on your shopping list

Alfa Romeo 156 2.0 (A)
IT’S BEEN NEARLY eight years since the 156 arrived on the scene and turned Alfa Romeo’s fortunes around, but you wouldn’t know it by looking at the car. Familiarity has not dulled the 156’s aesthetic appeal, while the latest cars have improved build quality and smoother Selespeed transmissions. The new 159, due mid next year, takes an evolutionary step forward, a testimony to the rightness of the 156’s design and concept.

How much: $99,800 with COE
Replacement arrives: Mid 2006
But the new model won’t have: the 156’s delicate styling details

Kia Magentis 2.0 (A)
IF GETTING A 2.0-litre sedan for less than the price of a Japanese supermini sounds appealing, you’d do well to visit a Kia showroom before stocks of the Magentis run out. There are indications that the new model will cost well over $70K, which makes the current car something of a steal. Based on the previous generation Hyundai Sonata, the Magentis has looks that won’t find universal favour but it’s impressively refined and comfortable.

How much: $53,499 with COE
Replacement arrives: First quarter 2006
But the new model won’t have: the pricing of a 1.5-litre Japanese car

Honda Civic 1.6 (A)
WHILE THE SEVENTH-generation Civic won’t go down in history as the most stylish model to carry the long-serving nameplate, it’s a well-made, dependable car that has been deservedly popular here. Now only available with automatic transmission, the Civic still impresses with its extremely spacious cabin and fine driving dynamics. A series of suspension improvements has managed to cure the bouncy ride that afflicted earlier models.

How much: $68,000 with COE
Replacement arrives: January 2006
But the new model won’t have: a frugal 1.6-litre engine option

Land Rover Freelander 2.5 (A)
INTRODUCED IN 1998 to compete with compact Sports Utility Vehicles like the Honda CR-V and Toyota RAV4, the Freelander still has one unique selling proposition – true go-anywhere ability. Its traction control and hill descent control systems allow it to go further off-road than its rivals while retaining a decent level of refinement on tarmac. A new Freelander arrives late next year but it will be positioned far more upmarket.

How much: $119,888 with COE
Replacement arrives: End 2006
But the new model won’t have: a bargain price. And it’ll have a 3.2-litre V6

Hyundai Accent 1.3
THE ACCENT NAME will be laid to rest once the last of these cars is sold, with the new Verna taking its place in Hyundai’s range. A favourite among budget-conscious buyers, the Accent serves up honest, no-frills motoring at its best. There’s plenty of cabin space and the 1.3-litre engine is surprisingly lively. Hyundai has no plans to build a five-door Verna, so the Accent still makes lots of sense if you value hatchback versatility.

How much: $40,500 with COE
Replacement arrives: It’s already here
But the new model doesn’t have: a practical hatchback bodystyle option

Nissan Sunny 1.6
THE SUNNY CONTINUES to fly off the showroom floor, thanks to its ultra-competitive pricing and made-in-Japan tag. While the cabin isn’t very spacious, it’s at least quite comfortable and well put-together. Earlier models were known for their appetite for fuel but the latest cars with variable valve timing-equipped engines and electronic throttle control are much better in this respect. The replacement model will be bigger and considerably more expensive.

How much: $51,000 with COE
Replacement arrives: First half 2006
But the new model won’t have: a price advantage over the Toyota Corolla Altis