1994-2002 [Subscribe to Daily Digest] |
I leased a SAAB in Feb. 2000 using the GM supplier program, as my company does work for GM. In this program, all other GM vehicles are priced at invoice plus a specified amount (usually $300-$500) depending on the make and model. SAAB's are priced using a regional formula that works out to about $1,000 UNDER invoice. Why?
In my case, I was able to negotiate the loyalty discount, the last two payments on my old SAAB ($800) and another $800 off the capital cost and still got 1.5% financing in the lease. After all of this and factoring in a reasonable market lease rate (6 to 7%), the $42K convertible became about $32K. Why?
Before discounts the residual on a 3 yr. lease was 51% of MSRP. After, it was 65% of actual cost. Why?
If you want to see GM's thinking, look at the SAAB Canada web site, price the car in Canadian dollars and convert back to US$. You'll find that the Canadian MSRP's are US$3K to US$4K cheaper. The cars are the same. Why?
Beacuse the cars are way overpriced at MSRP and everyone knows it!
I'm sure that GM still makes money after the discounts. I just don't think that they would continue to lose on every SAAB sold (or not sold) for very long. It's all "car math".
All of this is GM marketing trying to make us think that SAAB=BMW by using the names (9-3, 9-5 vs. 325i, 530i) and similar MSRP's. They just want to say that they produce a competant European sports/luxury vehicle, so they mimic BMW and Audi.
A BMW is a superior vehicle at a superior price. An Audi is just a luxurious Volkswagen.
SAAB should stop trying to compete with the Germans and price the cars at their real value. This would stop all the whining about poor resale value. You would compare the used car price to the real new car price, not some inflated MSRP to make some people think they were buying a BMW.
Sorry for the rant, but I hate people thinking that they made a poor chioce in SAAB, when in reality the resale value is no worse than similar cars when you factor in the discounts.
gatorcpa
'00 9-3 convertible
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