[camiller]

But the steep discounts offered, especially during the transition between model years makes it kind of work. Especially if you are looking for a used car with <40,000 miles and less than three years old. The same car, new, in the 2016 model year with a $8,000 incentive off the MSRP plus low interest...

[ethbro]

I can see this being the one case where it's likely to make sense.

The low-mileage used car owners purchased at a higher price or buyers will use worse financing options. The dealership has an incentive to get the old models out, and the financial backing to cut interest, resulting in their being able to sell new cars for less than a low-mileage used model.