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"More dramatically"? Not really...... Posted by Mike Lynch [Email] (#81) [Profile/Gallery] (more from Mike Lynch) on Thu, 24 Nov 2005 09:07:53 In Reply to: Price drops exponentially for used cars, Carolyn, Wed, 23 Nov 2005 09:58:46 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Even the cars you mention, BMW and Honda, depreciate dramatically, so your characterization that Saabs depreciate "more dramatically" is overstated. Typical of the Saab bashing you would hear if you told a BMW or Honda salesperson you were considering a Saab. I can hear the salesman say "Ya know Mr. Customer, the most expensive part of owning a nice car is the depreciation so a fine car like a BMW depreciates less so you're really saving money by paying $10,000 more for this here BMW than that Saab you were looking at.
Saabs actually have pretty normal or "average" depreciation by used car industry standards. Can't speak to Honda, but we are a Saab and BMW dealership and currently estimated Saab vs BMW resale based on published residual values is about 2% less for Saab after 36 months, hardly dramatic.
Statistically the popular cars like BMW and Honda will always look better on the resale chart which measures resale as a function of original list price as those two brands have always sold without much or any rebates or discounting required, whereas Saabs have historically been sold with huge rebates and discounts.
At some point that $40k BMW is gonna' be worth about $10k and you're gonna' feel pretty smug because your friends Saab that he bought about the same time is only worth $5k, but the Saab guy likely paid $10k less when new so who really lost the most? $40k-10k for the BMW vs $30k-5k for the Saab. The BMW was worth 25% of the original "selling price" the Saab only 16.6%. The BMW depreciated $30k the Saab only $25k, who was really the winner?
Theoretically that's all changed for 2006 with GM True Value Pricing which is why Saab residual values have come way up.
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