Saab USA lease offers

I’m hearing a lot of talk about the need for Saab to fix leasing in the United States.

I’ve just taken a look at Saab’s latest leasing offers in the US, and I’m struggling a little bit to see what’s so lacking. In saying that, I fully acknowledge that I live in a market where leasing is not commonplace for private buyers. I’m therefore a little unfamiliar with the options available to customers outside of what’s on the manufacturer’s pages.

The numbers I’ve reproduced below are all from the websites of the manufacturers mentioned, except for the Audi A6. As I couldn’t find lease offers for the Audi A6 on their website, I used LeaseCompare (3.2l FWD model, 15K miles p.a., 780 credit score, $2,600 downpayment).

The Saab 9-5 lease is based on a Turbo4 Sport Sedan, so it’s not as well equipped as some of the higher end Teutonic competition. It’s still a cracking drive, though, and if you opted for a Hirsch upgrade (when they come online) then it’d be even moreso. I think the price differences noted here are pretty compelling.

[table id=14 /]

(1) I couldn’t find a Mercedes E Class offer on any model less than the E350 (if in fact they offer a model smaller than the 350 in the US).

(2) The base model A6 seems to be called ‘Premium’. Maybe I should have used a higher downpayment (upping the downpayment to $3500 lowered the monthly cost to $551).

As mentioned, these figures are from the manufacturer’s own websites and I haven’t gone to the trouble of comparing all equipment levels, etc. I’ve chosen the most basic models I could get a lease figure for and threw in the BMW 3-series for the benefit of those who might have doubted the validity of including a 5-series.

The G37 comes up smelling like roses in this comparo, but bear in mind the loss of rear leg room (some four inches) and a significant loss of cargo space in the trunk as well. The G37 is a bit bigger than the 9-3, but it’s more expensive as well (see 9-3 leases, below).

It might just be me, but if these lease offers are correct, then the 9-5 should be seen as competitively priced. If there’s something I’m missing, please let me know in comments.

IF the 9-5 is indeed competitively priced, as it seems, then maybe there’s something else that needs to be fixed – customer trust, dealership experience, marketing, equipment levels, etc.

——

The Saab 9-3 is going for $299 a month for the 2011 models and there’s 0% finance available on both 2011 and 2010 Saab 9-3 models.

That is unbelievably good value, if you ask me. If I could get a 9-3 for $299 a month, I’d be all over the sucker.

jchan2
Guest
jchan2
5 years 6 months ago

There’s no E-Class model smaller than E350 in the US.

I think now it’s just getting the word out. I saw a Saab ad on CNN the other day, so it’s a step in the right direction.

Jeff
Guest
Jeff
5 years 6 months ago

Closest I can find to an Audi lease deal locally is $399/month for an A4 with $2,000 down plus tax.

Not sure who’s complaining about the 9-5 not being a good deal around here, but they’re mistaken. The problem is more than few people bothering to go to Saab dealers to cross shop.

matt
Guest
matt
5 years 6 months ago
I think it may have a little bit to do with the initial payment, but that may just be me. And that does seem like a good deal compared to all of the other numbers from the cars in the same class. But I think the word needs to get spread about how great Saab really is. I haven’t seen much advertising, but I do live in a bubble world where college rules my life. Speaking of which being up in the great snowy north I see a lot of Saabs on campus, about 2 dozen or so for about… Read more »
Andy Rupert
Guest
5 years 6 months ago

As you noted, most brands require $3-4k+ due plus tax, doc fee, and title/filing. However, most of my customers try to whittle the money due down to $999. Volvo is offering a sign and drive on their convertible. Maybe SAAB should as well.

aaron c
Guest
aaron c
5 years 6 months ago
I feel these are very competitive rates, especially considering I remember 9-5s being offered at this rate about 10 years ago. The kicker is the credit approval, and that may have been made much more stringent over the last few years, limiting some prospective customers. That could be changing in the coming months though. My only beef with the lease rate is that it’s for the Turbo4 spec 9-5, which doesn’t have a sunroof at any price, or parking sensors, which I feel is a bit of an oversight of this size and price. To get those features, you need… Read more »
zippy
Guest
zippy
5 years 6 months ago

Id be there in an instant at $399 a month.

Adam Shelton
Guest
5 years 6 months ago

I think the “sign and drive” point is a very good one, as that marketing strategy has really started to dominate in the US domestic market. Since saving money seems to be a lost art in the US, many people (yes even those buying nice European automobiles) want the lowest cash out of pocket possible. Also, with all due respect to the 9-3, it doesn’t play in the same league as the G37 IMO. For $60/month differential on a lease the 9-3 doesn’t stand much of a chance FWIW.

Patrik B
Guest
Patrik B
5 years 6 months ago

So the total cost of driving the car in a little bit more than 3 years will be US$ 19119 (3558 + 39*399 = 19119).

The list price of a basic Turbo4 is US$ 38525. This means that you will pay around half the price of the car in 3 years time. Wouldn’t it be better to buy the car and drive it during that period? Or is the price on used cars really low in the US?

Or are some costly things included in the lease price?

SteveW
Guest
SteveW
5 years 6 months ago
One thing to be considered is that you don’t have $38525 tied up in the vehicle. If you had the money it could be earning interest or invested in stocks. On the other hand if you don’t you could be paying interest on a loan to buy the car and that would add up over 3 or 4 years. Looking at used car prices in the UK across all manufacturers , losing 50% of the RRP in three years is about average. Depreciation per year then declines markedly. Therefore if you want a new car after 3 years then leasing… Read more »
Joe
Guest
Joe
5 years 6 months ago

But you would be able to get some nice discounts on 9-5 RRP, not least in the US, right?

eggsngrits
Guest
5 years 6 months ago
As Steve says below, there is a finance charge or opportunity loss with more money in the car for that three-year period. Interest rates are very low now, so its a better time to buy the whole car (if you will finance) now than most times. Some cars (BMW, MB) naturally have higher resell prices, while other cars (Lexus, Acura) aggressively re-market “off lease” cars using warranties and financing to artificially prop up the resell price. Both help to offset lease costs. In Saab’s case, the residual value is very much in question. It’s a car company that was on… Read more »
Mike C
Guest
Mike C
5 years 6 months ago

Eggs: Well said… some people lease because it arms them into a buy with little money in. They buy at the end when the car is cheaper. If they know that they will buy at the end, the miles do not matter. I leased both of my Saab convertibles and purchased them at the end of the lease. At that time, my dealer was giving me full Saab CPO at no additional chage.

Stan
Guest
Stan
5 years 6 months ago
Funny, I’ve always felt just the opposite. If you’re going to “buy at the end” you might as well buy at the beginning. Every time I ran the numbers, it was more expensive to lease then buy vs. buy, but I guess we all run numbers differently… Anyway, this “buy at the end” doesn’t always work out – For example, when I turned in my 08 9-3 last month, I could have bought a slightly less equipped (no memory seat or stereo upgrade, but add bluetooth which the 08 didn’t have), brand-new 2010 9-3 for about $1K more than the… Read more »
Mike C
Guest
Mike C
5 years 6 months ago

Stan: You are correct, in the end you do pay more for the car, however, the lease lets you at least get into the car for a payment that is doable. By time you are ready to buy, the up front monies are a lot less than if you were doing the deal based on the new car price.

Red J
Member
5 years 6 months ago

It is quite funny that many constantly moan about this and that, but never showing a comparison like this one.

@AdamS,
if you think that the G37 (sorry, but to me Infinity is synonym of ugliness) is such a better car, feel free to buy it.

SAAB_andee
Guest
SAAB_andee
5 years 6 months ago

I think these lease rates are not that bad. Maybe it´s so that people have to realize that they can´t have everything for nothing. a SAAB is not an car for everyone.
I also have to accept that i am only able to buy a car for 6-7 years because I can´t afford changing the car all 3 years. But I´m not telling SAAB they should lower prices that i can´buy a SAAB

Robert P
Guest
Robert P
5 years 6 months ago
We comapred lease prices in the Dutch Market (Leasing in the Netherlands is primarly for company car leasing. Lease configuration: Full Operational Lease incl wintertires Mileage/year: 37500km Lease term: 48 months (4 year) Audi A4 Limousine 2.0 TDIE 100KW BUSINESS EDITION 4D 1.040,85 Saab 9-3 Sport Sedan 1.9 TTID 96KW NORDEN EXKLUSIV 1.084,37 Opel Insignia hb 2.0 CDTI ECOTEC 96KW EDITION AUTO 5D 1.101,90 BMW 320D EFFICIENTDYNAMICS ED. BUS LINE 4D 120KW 1.102,56 Skoda Superb 2.0 TDI COMFORT BUS LINE DSG-6 5D 103KW 1.130,64 Volvo S60 D3 GEARTRONIC KINETIC 4D 120KW 1215,10 Volvo S80 D3 GEARTRONIC KINETIC 4D 120KW Prof… Read more »
Robert P
Guest
Robert P
5 years 6 months ago

Woops, ignore the Saab 9-3 Sport Sedan 1.9 TTID 96KW NORDEN EXKLUSIV, this one has a manual / not automatic gearbox.
I tried to get comparable cars, so all have Satnav, parking sensors and Metallic.

TurboLover
Guest
TurboLover
5 years 6 months ago

OT:
Antonov in DI, belives more capital is needed for Saab and that they might be in trouble already in the fall of 2011
http://di.se/Default.aspx?sr=6&tr=285504&rlt=0&pid=229732__ArticlePageProvider&epslanguage=sv

:-/

michaelb
Guest
michaelb
5 years 6 months ago

Very good table, worth to extend it to other engine and trim levels. Takes a lot of effort, but gives really the feel what this lease thing is about.

StefanH STHLM
Guest
StefanH STHLM
5 years 6 months ago

One silly question…
FWD, is that
Front Wheel Drive?
or
Four Wheel Drive?

Robert P
Guest
Robert P
5 years 6 months ago

FWD = FRONT Wheel Drive
XWD= CROSS wheel Drive (X is a cross) – So All Wheel Drive with a technical twist.

StefanH STHLM
Guest
StefanH STHLM
5 years 6 months ago

XWD is no problem. Im using it everyday myself. 🙂
And your answer is what I expected it to be. 🙂

Why I ask is that in the list cars with Front wheel drive are both not labeled FWD and the audi and volvo are labeled FWD. Thats why I came into the belief that someone had misinterpreted the three letters.

eggsngrits
Guest
5 years 6 months ago
I’ve never leased a car. The new cars that I’ve owned have not had a lease deal that I thought made sense for me. The mileage limitations are/were one issue in the past. They way that I drive now, I’d put only half of the 32k miles on the vehicle in three years, but then that begs the question of why I’d buy a new car. As said above, most of the advertised leases and finance deals are for specific narrow market niches or apply to only small slivers of the inventory on hand. The majority of folks get a… Read more »
DFF
Guest
DFF
5 years 6 months ago

Agree 100% with this and your earlier post. I assume you are referring to Dave Ramsey as the finance guru. Not only Mr. Ramsey, but other personal finance gurus such as Suze Orman and Clark Howard say leasing is a bad idea in most cases. What is good about leasing is that it provides a supply of late model used cars that prudent buyers can pick up while avoiding the heavy depreciation hit that the new car buyer suffers.

BoeBoe
Guest
BoeBoe
5 years 6 months ago

Why are you comparing hi-end V6 models with a 4 cylinder Saab? It would be better to look at the price of the 2.8T V6 Aero model.

SCVA
Guest
SCVA
5 years 6 months ago

I honestly thought leasing was back to not being an option in the US – how sad is that!

Question: In the US do I have to lease something off the lot – or can I order to suit something I lease? (I really don’t want to be stuck with an automatic transmission.)

I’ve always done CPO – maybe my next step will be to lease then buy it at the end of the lease. A 300-400 payment might be possible – a $600-700 is not wise for me.

hughw
Guest
hughw
5 years 6 months ago
I’ve leased about 9 Saabs over the last 25 years. A good dealer can adjust the “advertized” lease rate for a particular model to suit your needs and the model and the equipment you choose. So no need to lease the exact model in the ad, YOu can order whatever you want and that the dealer can obtain. In the US, most dealers will contact other dealers and trade inventory to obtain what you want. As for mileage, my problem is the opposite of Eggs as I put many more miles on my cars than the base lease mileage which… Read more »
nodrog
Guest
nodrog
5 years 6 months ago
I just thought that I might chime in on an unmentioned aspect of the American market as I understand it. In the US there are very few “company” cars. A few companies negotiate reduced pricing for a particular brand through fleet sales and offer that price to upper level or even all employees. The customer then buys the car using his own money. Many companies, however, will lease a car on behalf of their top level executives. This is true of large companies and small family-owned businesses. The lease has a tax advantage because the company does not own the… Read more »
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