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There are 3 parts to this equation.
1. Last Model Year of any brand will create a discount, and we are already in Feb of 09. Some companies will soon have 2010 models on the floor. So this is good for at least 15% off sticker to as much as 25%.
2. Economic conditions are not particulary helpful so prices of current year vehicles are being discounted more than normal. So 5% to 10% off sticker is today 10% to 30%.
3. Saab uncertainty. This is the 900 pound gorilla in the room. No one can say with certainty that the warranty will be be effective in the real world. If there is no more Saab, even if GM is providing a warranty on paper how will it work out. Cars are very specialized in regards to computer systems and sophisticated controls. A good car requires a well trained and highly specialized mechanic. You need parts specialists etc.
Since much of the value in a modern new car is in the warranty how much is this factor worth. No one can really know, but it is a foregone conclusion that the vast majority of the car buying public will not want a Saab at any reasoanble price because of this factor. So this could be 20% to 40% off sticker price.
So taking a low end of each of these we get 15, 10 and 20 Percent. That comes to 45% off sticker. That indeed gets you close to $20k off that Aero price with the possibliltiy of even more. It is a model year old in poor economic times with a distinct possibility of a crippled warranty. It still would sell for over $20,000 hard to come buy dollars and I don't think you will find any lines forming at dealers to buy them at that price. (Although I would like to think I would be in that line am not sure I could justify it)
AS I have said elsewhere I hope that Saab is continued under a better ownership and we will all be happier.
Bill
posted by 64.22.39...
, Fri, 20 Feb 2009 16:17:00
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