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Date: Wed, 03 Jun 1998 14:27:28 -0700
From: RED <davharnopsamnet.net>
Subject: Re: SAAB depreciation? / Reliability of late models


Joshua Landess wrote: > > > I've read one or two reviews of newer Saabs which specifically > questioned the price, moreso than the reviewers seemed to concern > themselves with the prices of comparable BMW's, Acuras, Lexus's, > (what-ever). It was pointed out that, given the 4 cylinder engine > issue, it was difficult to justify a $30k-$40k car as executive > transport. > In any case, I may have overstated my case that the Saab is > particularly over-priced. It would rather depend on the "beholder", > although my theory is somewhat born out by the topic at hand (apparent > greater depreciation than other marques). I don't retract my personal > opinion that new cars, in general, are over-priced. I believe this is > a result of years of fancy financing and losing sight of the value of > actual cash. > I agree with you that new cars, in general, are overpriced. I do think, however, that SAABs, particularly the base 9-3, is certainly a good value for what you get, compared to BMW, Audi, etc. at the same sticker prices. I thought the following might be an interesting anecdote: When I leased a 1991 SAAB 9000 CSE at a SAAB/BMW/Mazda dealer, the salesman pointed out that I could have leased one of the 5-series BMWs for the same lease payments. I don't remember which particular model it was, but the sticker was about 38 K. I didn't really consider it because I'm too used to driving a FWD car. (Also I'm not the type who wants to make the BMW fashion statement.) Still it was a car that was 6 or 7 K more than the SAAB, and the difference was the much higher residual as a percentage of original cost of the BMW. I can't say that the same thing is always true--there may have been dealer incentives involved--but I'm certain there'd always be a disparity. Incidentally, we rolled the SAAB 2 1/2 times into a soybean field a few months later and it was totaled. (I wasn't driving.) The two of us came out with one bruise and one scratch. I could tell that the people who stopped thought it would be blood and guts for sure.

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