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This paper identifies two sources of uncertainties in model projections of temperature and precipitation: internal and inter-model variability. Eight models of WCRP-CMIP3 and WCRP-CMIP5 were compared to identify improvements in the reliability of projections from new generation models. While no significant differences are observed between both datasets, some improvements were found in the new generation models. For example, in summer CMIP5 inter-model variability of temperature was lower over northeastern Argentina, Paraguay and northern Brazil, in the last decades of the 21st century. Reliability of temperature projections from both sets of models is high, with signal to noise ratio greater than 1 over most of the study region. Although no major differences were observed in both precipitation datasets, CMIP5 inter-model variability was lower over northern and eastern Brazil in summer (especially at the end of the 21st century). Reliability of precipitation projections was low in both datasets. However, the signal to noise ratio in new generation models was close to 1, and even greater than 1 over eastern Argentina, Uruguay and southern Brazil in some seasons. [ABSTRACT FROM AUTHOR]