Date: Sun, 17 Oct 1999 03:49:27 GMT From: William Glasgall <glasgallnopsam.com> Subject: Re: Why does a Saab depriciate fast ?
It may be because Saabs still lack the cachet of a BMW or Mercedes. This is probably as much a function of limited distribution and marketing, historically, as repair costs or longevity. Demand for used Saabs has not been as robust as that for Volvos, Mercs, BMWs, Lexuses, among other prestige marques. Consumer Reports depreciation figures appear to back up your contention that Saab depreciation is more rapid than average. Indeed, one way Saab manages to keep its current lease rates down is to severely lowball the depreciation expense. The estimated value of Saabs at lease-end (at least for ones that Saab dealers lease via Chase financing) is probably well above market. Meaning in order to get rid of them in 3 years time, Saab and Chase Manhattan will probably be taking a bath and disposing of low-mileage, off-lease 9-5s and 9-3s at very good prices. If today's low lease rates continue into 2002-2003, I'll be tempted to turn my 9-5 back and lease another new one. Bill G Harry Johal wrote: > > Hello Saab owners, I was wondering why the Saab(s) depreciate faster than > say BMW's and such? > Is it mainly because of the high cost of repairs?
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