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I just went through this choice myself and test drove both extensively. My in-laws also have the Passat. Last week I purchased the 9-3.
For some comparisons see the posts on 9-3 vs Jetta below. Many of the comparisons were the same ones I had in comparing the 9-3 to the Passat.
General thoughts:
Passat: Loved by consumer reports, nice modern look (although not sure about the 2001.5 chevy impala style headlights), generally very well built and probably the best family sedan (for the money) available in the USA in terms of safety, performance.... Many nice gadgets, like adjustable heated seats, aut0-up windows, close windows and roof from outside, one touch roof open/close some other nice touches. Monsoon is a pretty good audio system and easy to fiddle with than Saabs. Better remote, full-size spare (if you care - I prefer the fuel savings of the donut). Generally the ride was slightly smoother, wind noise varied, more with the Passat sunroof.
But: Terrible warranty and lots of gadgets for things to go wrong with. My wife has a VW beetle and it needed a few things in the first two years; we are really hoping nothing electronic breaks now. The powertrain warranty is bunk - what cars have major engine problems before 100,000 miles these days that are not computer related? VW dealers generally not great for service.
Saab 9-3. More controlled power, more fun to drive (for me)- the saab rewards getting to know it. Hatchback, nicer integration of audio into driving (steering wheel controls, audio mute) and some nice gadgets of its own, (night panel, mirror defrost tied to rear window defrost, wide angle mirrors, others). This model has been refined for years and years with many tweaks from 900 to 903 and then within the 9-3 since '99. It should be pretty reliable. Definitely more of a "sportscar" than the Passat and I am turning 30 this year, kids on the horizon.... Better range of accessories available, excellent roof rack for bikes that comes off easily.
But: Dated look (although I like it), will be replaced in a year or two. Steering wheel does not tilt, less room for driver's feet (although I drove mine 9 hours and thought it was fine). Pretty medioquor (sp?) sound system, although easily upgradeable.
Cost: Similarily equiped with options, my best deal on the Saab (invoice -4700 dealer incentive w 4 accessories at half price), + tax and title but not other fees = 22,800, about $600 more than I would have paid for the Passat. My Saab is a red, 5spd, 5dr, sunroof, heated seats, cloth.
The price was not to difficult to get with shopping around by phone/ email.
Don't be stymied by the difference in residual values; Using MSRP the passat is around 45% (4yr/15K) and the Saab appears to be 36% (4yr/15K), but at the "correct" price, including incentives, the recalculated residual is around 48%
For more info search this board and visit VWvortex.com. For reviews, try edmunds.com and carpoint (microsofts site, although thier reviews are a little sketchy). As a sidenote I found saabnet.com to be extremely helpful. As much as I enjoy my Saab the Passat is a great car, you can't "lose" with either. Good luck and have fun, Chris K.
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