New or Used – You Decide

This post is more of something to ponder. When looking at new or used cars, where is the better value? Typically I would answer this question with no hesitation that used is better value because the cars depreciation is the worst in the beginning and the used car has already been through the worst of the depreciation. The big thing that kills this notion is the incredible pricing that dealers are offering on new Saab’s right now. I don’t see these prices as something that excites me from the side of a new car dealer as the prices are coming from dealers losing money on every one of these cars to move old inventory, but from the side of the retail customer it is fantastic as you get a lot of car for relatively little money.

Comparing a used Saab to a new Saab, recently I have seen 2008 Saab 9-3’s on dealer lots in Canada for as much as $22000 with low millage on them. Now compare that to a brand new base model Saab 9-3 with 6spd transmission for as low as $27265. Where do you see the better value? I see it in the new because rather 20-30000kms on the engine, there are virtually 0kms. Now some will say “yes but there is no warranty”, true but a lot of the 2008 models are or just about out of their warranties as well and if warranty is a big enough issue for you, buy an extended warranty. Even if an extended warranty for 4yrs would cost you say $2000, you are still under $30,000 for a brand new Saab and pretty much a new car warranty.

Now look at other manufacturer’s cars available at or above the starting price of the 9-3 deals out there. You have Kia Optima EX luxury is $32,050.00 and yes it’s an automatic but still a Kia, Chevy Malibu LT starts at $27,970.00 again with an automatic but is also one of the quickest depreciating cars out there. Recently we had a customer come in from a Kia store and buy a 9-3 sport combi because it was a couple grand more than the Kia Forte he had been looking at and he couldn’t justify passing on a Saab as he had a 9-3 convertible as his second car.

The odd thing is that most dealers have had no problem moving used Saabs as they are a desirable used car, but have found it hard to sell the new cars in stock. With pricing of the new Saab cars falling in line with 2 year old used car prices now, it should be clear to anyone to look at new when it comes to Saab before you look at the used. This is definitely the right time for you to be buying if Saab is what you are looking for and there are plenty of dealers out there that are ready and willing to get you into the car you dream about.

maanders
Member
4 years 6 months ago
It usually comes down to how long you plan to keep the car. When I buy a new car it is usually with the intent of keeping it 10 years. My last two new cars have been an ’89 Acura Integra and a 2000 Saab 9-3. Both cars either had only warranty repairs or typical wear and tear repairs for the first 10 years, so I considered them good values. Sure, several used cars during that same span would have been less expensive, but then you are trading cost for the potential of more repairs. If you get good used… Read more »
Perian
Member
4 years 6 months ago

Come shop here in New York. New 2011 9-5’s are 50% off list, new 2011 9-3’s are 35% off list.

My neighbor just bought home a new 9-5 – and paid what I paid (TO LEASE) my 9-5.

So depressing!

Eric
Member
4 years 6 months ago

YUP! The dealer I bought my 2011 SportCombi from has fully lodaed 93x models priced at $3000 LESS than what I paid for my loaded 93 (regular) SportCombi 4 months ago.

It feels like having a hand grenade explode in my checking account.

LG Aero
Member
4 years 6 months ago

Would love to know which ny dealer is offering 50% off on 9-5. have not seen it quite that low and have looked hard.

Perian
Member
4 years 6 months ago

northshoresaab.com

He had 29 in stock two weeks ago…not so many today! Hurry up!!

zippy
Member
4 years 6 months ago

Jason, you cannot even begin to believe how much I miss my Saab. I hope the new owner loves it as much as I did.

Dannii
Member
4 years 6 months ago

What, Zippy left the fold?

zippy
Member
4 years 6 months ago

Yes. Now in UK waiting for my insurance premiums to come down to a sane level so I can return. £900 a year for car insurance is a bit of a joke, IMO.

I shall be back!! I have seen a ton of new 9-5 s for under £20000. Just wish I could afford to buy one.

AeroDanny
Member
4 years 6 months ago
I went in to my Saab dealer a month ago to see about trading in my 2006 9-3 Aero for a 9-5 Turbo4 Premium as they were discounting them 35-40%. They quoted me a payment and I did the credit app and they said they would call me the next day. The salesman called me the following morning and said he would call me later on that day. I never heard back so I called the next day in the late afternoon and he said the payment I was quoted did not include the payoff of the balance on my… Read more »
saabman
Member
4 years 6 months ago
Jason, thanks for this piece. I bought my first Saab in 2010 (almost exactly e years ago, in fact. It was a used 2007 9-3 with lots of frills–moonroof, Bose stereo–and quite low mileage at about 24,000. There was also just under a year left on the warranty. I really liked that car. So, when I saw a number of great sales for new 2011 9-3s in September I actually traded in the 2007 car on a 2011 xwd. It was an ex-loaner available for about $9500 off msrp. Being an avid SU reader I knew that Saab faced an… Read more »
John Doe
Member
4 years 6 months ago

I called a SAAB/GM dealer in Illinois about a 2011 (new) 9.3 XWD they had for sale for $24,500,however I would have to drive to Chicago Illinois to trade-in my Audi and pick up the SAAB. It just doesn’t make good sense to drive that far and lose money on my trade. It’s good deal for that car, sense it was originally a $36,000 car. But it does have the rather old thirsty 210hp engine. The newer engines are direct injection and more fuel efficient.

mpprh
Member
4 years 6 months ago

I had a call yesterday from an old friend to discuss his motoring needs.

He is a 78 year old Swede who lives in South France and drives a fully loaded 9-3 1.9 tdi 20,000km each year including one summer return trip to Sweden.

With 112,000 kms on the clock it had a history of problems including the engine cutting out on the autoroute. Even worse, the 120,000 km service would cost around €2,300 with belts and tyres.

The local Volvo dealer has offered him €5000 against a 20,000km ex demonstrator Volvo V70.

What should he do ?

RS
Member
4 years 6 months ago

mpprh, first I think they’re trying to rip him off. I wouldn’t pay more than a thousand euro for the 120k km service even at a Saab dealer. An independent would do it probably for 700 incl. a water pump and if the tires make up for an other 500, 2300 eur is way overpriced.
Second, maybe he should consider a 9-3 petrol. With the low milage -and most likely- a lightened right foot there’s a chance he will clog the diesel. Which may cause trouble ones he hits the highway ones a year.

witek
Member
4 years 6 months ago

Only Used!!!
in 06 we bought 9-3 from 04 for the half price of new with 24K miles on odometer.few months ago in october when we bought another one 9-3 from 08 this time we spend $19K vs new one for $35k(regular 9-3 with auto trans, moonroof, cold weather package, 17 inch rims and audio bose system). I know prices are high in chicagoland.
I love both SAABs.
Trust me i would like to be able to buy a new one but out of the price range for me……:(
w.

Eric
Member
4 years 6 months ago
Thanks for this post – very good point. I’m in the Boston area, where we have a lot of Saab dealers who’ve had to discount their inventories. I hadn’t been planning on buying a new car for a few years, but could not turn down the chance to buy a Saab for such a low price. I picked up a 9-3X courtesy car (Comfort Package, Premium Package, Moonroof, Bose Audio) for 46% off of the original price of $45K, with a 50K mile warranty included. In my area, it just doesn’t make sense to buy Saabs used while there’s still… Read more »
Harriet
Member
4 years 6 months ago
I just bought a used 9.5, it is the most comfortable car I have ever had – I got a fabulous price and I hope it will work for me until the new Saabs come out, and they will. I drove competitors cars – name it, I drove it, and two felt like trucks as to the way they handled, one got horrible gas mileage, and one, in my friend’s words, “I got rid of a husband who was less trouble than my —” therefore, I had no problem going back to Saab, and I get great service from the… Read more »
Tom
Member
4 years 4 months ago
Where can you find an extended warranty on these 2011 unit? I have a deal/deposit on a 9-5 Aero x-drive 2011 (800 miles) for $30,800 (only has upgraded stereo no additional packages) but dealer has no clue on warranty/extended warranty plus, service department folks say I am crazy to buy a Saab at any deal price because they are having parts issues (getting parts) for repair. Not sure if the old saying holds true on this car “If it is too good to be true”… No crystal ball on Saab future but lack of parts could mean a write off… Read more »
Baver
Member
4 years 4 months ago
In the US, Ally offers extended warranties – but there are others as well for around $2000. Read it over well. Get a loan with zero down and purchase the GAP insurance. That is a crazy good price, but body parts ARE a concern. I’ve had mine since the beginning of October and am already closing in on 15,000 miles. For the price I paid, I would not do it again, but I do love the car. For the price they are offering you, I’d need to think about it. Where are you located? A good independent shop will be… Read more »
Tom
Member
4 years 3 months ago
I am in PA outside Philadelphia. I am an insurance agent and your concern is justified but the insurance companies factor in these cost into pricing and make a “total loss” more likely if a repair shop can’t access any replacement parts. Repair time is money lost to an insurance company if thing go beyond 10 days. In general that is. GAP insurance is an important piece of this puzzle for piece of mind for first couple of years on the loan as the car depreciates down faster My goal was to get in at a good price, hopefully keep… Read more »
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