Date: Mon, 13 Sep 1999 03:51:26 GMT
From: William Glasgall <glasgallnopsam.com>
Subject: Re: 1999 9-3 Lease question


Norm, et. al., Having a lease with a high residual value at expiration doesn't mean you get stuck with anything, of course, in an open end lease. What it does indicate is that the manufacturer is subsidizing the lease rate. A high residual value means Saab (or any other manufacturer that does this) is lowballing the depreciation charge. This reduced depreciation gets passed on to the lease-holder (you) in the form of a lower monthly payment. When the lease expires, you can, of course, buy the car--but if the amount you owe is higher than the blue-book or street value at that time, you may want to turn it back and start all over again. Indeed, Consumer Reports surveys regularly show Saabs having higher than average depreciation (and, thus, lower resale values than other vehicles in their price range). If the lessor takes the car back and sells it at auction for less than the end-of-lease value, it's the manufacturer eating the difference. If this sounds like backward economics, so be it. But it's part of the complex game of auto pricing. I figure if Saab wants to subsidize its leases to gain market share or just keep the factory working, that's a benefit to be grabbed now. Rgds, Bill "Norman L. Kleinberg" wrote: > > Hi Thomas: > > This info was given to me by William Glassgall in answer to an earlier post > about V-6 engines, but I'll pass it along in case he doesn't see your message. > > In short, some of the great lease deals on SAABs might be due to the required > residual value. IOW, to get the deal you have to basically insure that the > market value of the car you return is $X. You need to see if X is realistic; > there's a decent chance it isn't, so that you have to make up the difference. > It's sort of like points on a mortgage, except you pay an uncertain amount at > the end<g>. > > Despite this, I too think the SAAB's a very well thought-out car and am actively > considering one to replace my Maxima. > > Good Luck. > > =NLK= > > Thomas F Frazer wrote: > > > Hello Saab fans: > > After 1,000 miles in rented Saabs(a 9-3 SE 5 door and a 9-3 convertible) I > > must simply have one of these terrific cars. Especially telling was the > > drive back on I 90 West when a 95 911 cabrio wanted to play. As you all > > know, it's a very satisifing driver's car. I feel that the Saab has real > > character and is a hoot to drive because it is a bit more demanding of it's > > driver than a Japanese car or a BMW or some such "sports sedan." > > > > For the month of September, Saab is offering a great lease on a 9-3 5 door > > with a sunroof, in dash CD and heated seats for approx $800 down and > > $280+tax a month for 36 month, allowing 12,000 miles a year. Which sounds > > like a very good deal to me. My wife's car is going back on it's lease in > > November and these numbers sound attractive enough to get the Saab now and > > have both cars during October. > > > > My questions to the group are: > > Are there any changes in the 2000 9-3's that you know of that make them > > better than the 1999 cars? > > > > Is the HOT 9-3 SE worth the premium? Does the extra 15 horsepower really > > make much difference ? Is it more "sporting" in character and a bit > > quirkier? Or is it fractionally faster and more money for stuff that > > doesn't matter that much to me (eg. leather seats, wood panel, etc...) > > > > I live in Santa Rosa, California which no longer has a Saab dealership. My > > choices are Downtown Saab in Oakland, or Bianco Saab/Cadillac (how's that > > for a combination!) in Corte Madera. Do any of you have any opinions on > > either of these dealerships. Any salesperson reccomendations? > > > > This is a very nice newsgroup. I look forward to reading it while I acquire > > and drive my next car. > > > > Thank you very much in advance > > Tom Frazer

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