Date: Thu, 21 May 1998 12:33:17 -0700 From: RED <davharnopsamnet.net> Subject: Re: SAAB depreciation?
Alex Bilyk wrote: > > Hello SAAB folks, > > Why SAAB depreciation is so turbo-quick? I checked pricies (Edmund's) on > 1996 900 models and their cost is almost a half of what 1998 cost. It's > really unlike other European makes. I don't get it. Any thoughts? > > Thanks, > > AB I am leasing my third SAAB, and this has definitely been a concern of mine. I've been told that it's not that the car falls apart or becomes less reliable more rapidly than other makes. It's more a case that SAABs don't appeal to a very large market. Now maybe that's an advantage in some ways. But it's like this: If you went out and asked every Chevy driver you saw if they'd like to own a BMW, the vast majority would say, Yeah! Gimme! If you asked the same group about a SAAB, most would say, Huh? After you told or reminded them what a SAAB is, many might say, Ain't that one o' them weird-lookin' cars. Anyway, the point is, most wouldn't go seeking out a SAAB if they suddenly could afford a nice car. That, as I understand is a principal reason for SAABs' depreciation. The other reason I've heard--and this one I'm more skeptical of--is that a larger fraction of SAAB owners are buying for long-term ownwership, compared to owners of other makes. SAABs, except for convertibles, have not often been "fad" cars. (Note the high resale value of the convertibles.) This factor presumably limits the market even further. I think this factor, though, might have been in effect more like ten years ago. Today, all cars are so damned expensive, that there should always be a market for good used ones. This depreciation/lease problem is getting bad enough that I probably will not lease (or buy) another SAAB when my lease expires in January. I'll have to look for cars that retain more value in order to get an affordable lease.
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