Saabstermath, Bonus Edition: Let's Play Lowball!

Bertel Schmitt
by Bertel Schmitt

Thinking of cashing in on Saab’s misfortunes? Contemplating your own bankruptcy deal, where you can buy a brand new (well, nicely aged on the dealer lot) Saab for pennies on the dollar? Think again. Edmunds.com Senior Consumer Advice Editor Philip Reed says you will be in for a nasty surprise:

“Consumers shouldn’t expect a fire sale on unsold Saabs just yet. While incentives are no longer being offered for now, our research indicates pricing remains unchanged at Saab dealerships. Dealers are taking a wait-and-see approach since this situation is changing rapidly. But Edmunds.com analysts estimate that the True Market Value price of new vehicles will be discounted by an average of 28 percent from MSRP — and as high as 33 percent in some cases.”

That may happen, down the road. Currently, prices at some dealers are going up. Yes, you heard right. Up. Edmunds found a Saab dealership in Los Angeles where new Saabs are sold in “as-is” condition as if they were used cars, but they are priced at full MSRP. The reasoning is that some models had $12,000 in incentives the previous day, but these price breaks were no longer available because of the bankruptcy.

One reader told us that he went to a Saab dealer, made a lowball offer, only to hear the story that because Saab is in bankruptcy, the company will buy back all cars on dealer’s lots. Sure. And low flying pigs were sighted of Trollhättan.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

More by Bertel Schmitt

Comments
Join the conversation
6 of 32 comments
  • Jasper2 Jasper2 on Dec 24, 2011

    ? Nothing new or surprising in your remarks. I even agree to a degree. I.e., what the hell were all those well paid SAAB engineers doing all this time? We know all that, including the “cheap date” crack. You totally missed my point. Don't kick someone when they are down bucko. That is cowardly. Are you cowardly?

  • Bertel Schmitt Bertel Schmitt on Dec 24, 2011

    Telling us what not to write is a waste on bandwidth. It will be ignored. Also, I am not your bucko. If you don't know what a civilized discussion is, then your posting privileges will be revoked.

    • See 1 previous
    • Dreadnought Dreadnought on Dec 26, 2011

      @Edward Niedermeyer "If you make me start thinking about the fact that a children’s crusade has dumped an entire town on its backside the week before Christmas, I’d seriously run the risk of losing my holiday cheer." ?????????

  • Acuraandy Acuraandy on Dec 25, 2011

    WTH would be the point of Saab buying back inventories? More bad money after bad? Same logic as cash-for-clunkers. Morons.

  • DC Bruce DC Bruce on Dec 29, 2011

    Well, what's happening right now is what economists call "price discovery." That is the market (i.e. buyers and sellers) is "discovering" what the price of a Saab should be, now that the company is bankrupt, the car will be sold without a manufacturer warranty and, at some point in time, parts availability and the availability of knowledgeable mechanics will decline. That has nothing to do with "floor planning," MSRP, dealer holdbacks, what the dealer paid or any of that stuff. If you're an American and you want to see how this works, take a look at the residential real estate market in places like Nevada, California, and Florida. In those markets and probably some others, the market has not "discovered" the new pricing for residential real estate . . . to the distress of buyers and sellers alike, not to mention lenders holding paper secured by houses purchased in, say, 2006.

Next