Date: Sat, 02 Mar 2002 17:22:54 GMT From: Bob <uctraingNOSPAMnopsamanet.com> Subject: Re: Viggen Gone
On Sat, 02 Mar 2002 15:41:37 GMT, "Fritz Eichelberger" <fritzernopsam.com> wrote: >I just sold my 99 miata to get a 2002 convertible. The Miata is a fun >drive, reliable car and the dealer even gave me more than blue book value on >it in central florida. > >Doesn't compare to my new saab convertible. Agreed. Japanese cars are reliable, functional, and nimble. They still don't compare to the feeling you get when driving the Saab. BTW - Saabs depreciate in the US because they are more of a novelty ie., uncommon. When you buy new, you pay what it costs to build a car of a certain level. If people are not interested in a certain car at the price the manufacturer can afford to sell it for, lack of demand forces them out of business. Demand influences price, but there's a bottom end. The used market is entirely different. Here, vehicles sell based on demand again, but demand is reflected radically as a function of the price. There's no hard floor. So, "depreciation", as it's called, is higher for a car in less demand like the Saab. It doesn't mean that the car is worth less, it's just priced lower. The other factor to consider is that Saabs often go out the door for 4-5K less at the end of the year. That cuts 4-5K off of whatever you thought the car was worth. All cars suffer this "loss", some are slightly better. However, when you look at the price they went out the door for and compare that (_not_ MSRP), most are comparable. One exception is when the manufacturer raises the price of their new models each year... this elevates the price of the used models. Or, of course, certain models that are in limited supply have artificially high resale. Me, I buy cars that have already gone through the 2 year initial loss and save a pile of dough. That's not for everybody. Just my .02, Bob
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