I mean, literally, you're correct of course, but as another poster has mentioned consumers have come to expect incentives on cars. The best of our Japanese/German friends may not be resorting to the same levels of incentives, but they are all now at the very least using low interest financing to move their cars--One of the only ones that is not using financing is Acura's new TL since it has gotten lots of recent attention, just as the previous TL did when it was first released only to fizzle out and be called bland as its cycle went on, but last summer before the new TL came out they were giving away the old TLs (Ugh. What a nasty car that was!).

Anyway, the point in all of this is that after they do change the MSRP a new customer to Saab who is attracted by the more reasonable price cannot be expected to know that s/he is *already* getting the incentives factored in and, so long as other manufacturers offer an incentive, whether reasonable or not, you can expect this new Saab customer is going to at least ask for them. (I would. Wouldn't you?) When Saab says 'We don't offer incentives' to these new customers some of them will be turned off. The magic question is will enough of them still be turned on, believing that they are getting a good deal EVEN THOUGH THEY'RE PAYING FULL LIST PRICE, or, will it possibly lead to even lower sales for Saab as people start to feel they are not getting a good deal (even though when comparing it to the year 2004 they would be getting a good deal!) My point is that it is not realistic to expect any new consumer to recognize that in relation to the year 2004 they're getting a good deal. I, for exmaple, had no idea when I went to buy my 02' whether poeple in the year 2000 got a good deal or not. I only knew that I was going to get the very best price I could get in 2002. Anyway, you've rasied a fascinating set of questions!

Jon

posted by 12.100.24...

• Why not drop prices?, davecl , Tue, 4 May 2004 05:23:40
  • IMHO incentive base selling works....., Mike Lynch , Wed, 5 May 2004 17:06:08
    • Thanks for the realistic input, as always. n/m, Jon in Chicago, Thu, 6 May 2004 11:06:57
    • I agree on some points, jeff, Thu, 6 May 2004 05:16:02
  • Re: Why not drop prices?, saabnewbe, Tue, 4 May 2004 14:43:20
  • Because every once in a while, Ells, Tue, 4 May 2004 13:53:57
  • Saab's US Unique Selling Point (?), Jon in Chicago, Tue, 4 May 2004 11:56:36
    • Interesting dilemna, Davecl , Tue, 4 May 2004 13:32:05
      • If Saab does it alone, then No...., Jon in Chicago, Tue, 4 May 2004 14:48:42
    • risk, jeff, Tue, 4 May 2004 12:06:04
      • Unrealisitc, maybe, Jon in Chicago, Tue, 4 May 2004 12:54:19 <-- Viewing This Message
  • Re: Why not drop prices?, Davecl , Tue, 4 May 2004 10:21:02
    • Re: Why not drop prices?, jeff, Tue, 4 May 2004 11:37:48
  • Re: Why not drop prices?, Gres718, Tue, 4 May 2004 10:00:13
  • It would be a major risk ..., DougD, Tue, 4 May 2004 09:36:07
    • Re: It would be a major risk ..., jeff, Tue, 4 May 2004 10:07:58
  • Paid $31K for '03 Aero, would not have bought..., Lynn, Tue, 4 May 2004 09:25:56
    • Re: 31k taxes aside right?, 3PinFever, Tue, 4 May 2004 10:18:13
      • Seems a little low, Mike, Tue, 4 May 2004 10:35:32
        • $31,220 for 413 miles on clock, lightly used..., Lynn, Tue, 4 May 2004 12:40:11
  • Re: Why not drop prices?, aizzo , Tue, 4 May 2004 09:19:05
  • I never would have bought my 04 Aero Wagon at 40k+, Mike, Tue, 4 May 2004 08:23:32
  • I agree, jeff, Tue, 4 May 2004 07:05:28

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