Date: Sun, 07 Jun 1998 04:55:52 GMT
From: (bolis)
Subject: Re: SAAB depreciation?

On Thu, 21 May 1998 12:33:17 -0700, RED <> wrote: >Alex Bilyk wrote: >> >> Hello SAAB folks, >> >> Why SAAB depreciation is so turbo-quick? I checked pricies (Edmund's) on >> 1996 900 models and their cost is almost a half of what 1998 cost. It's >> really unlike other European makes. I don't get it. Any thoughts? >> >> Thanks, >> >> AB > >I am leasing my third SAAB, and this has definitely been a concern of >mine. I've been told that it's not that the car falls apart or becomes >less reliable more rapidly than other makes. It's more a case that SAABs >don't appeal to a very large market. Now maybe that's an advantage in >some ways. But it's like this: If you went out and asked every Chevy >driver you saw if they'd like to own a BMW, the vast majority would say, >Yeah! Gimme! If you asked the same group about a SAAB, most would say, >Huh? After you told or reminded them what a SAAB is, many might say, >Ain't that one o' them weird-lookin' cars. Anyway, the point is, most >wouldn't go seeking out a SAAB if they suddenly could afford a nice car. > >That, as I understand is a principal reason for SAABs' depreciation. The >other reason I've heard--and this one I'm more skeptical of--is that a >larger fraction of SAAB owners are buying for long-term ownwership, >compared to owners of other makes. SAABs, except for convertibles, have >not often been "fad" cars. (Note the high resale value of the >convertibles.) This factor presumably limits the market even further. I >think this factor, though, might have been in effect more like ten years >ago. Today, all cars are so damned expensive, that there should always >be a market for good used ones. > >This depreciation/lease problem is getting bad enough that I probably >will not lease (or buy) another SAAB when my lease expires in January. >I'll have to look for cars that retain more value in order to get an >affordable lease. Could not have agreed more... Lorusso

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