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I had a similar decision to make earlier this week so I am well versed in the current pricing/discounts(in Ma. anyways).
39,900 for the 05 is a good price. $5500 in discounts for an 07 is a stellar price!
I opted for a leftover 06 that had all the options I wanted except 18" wheels and did not receive the % discount that you will get on the 07.
Although my 05 had very low miles and was well cared for I liked the idea of buying new and breaking the car in myself. The difference in price was $4k. For me it was money well spent.
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