Has Advice For Saab Owners

  • December 21, 2011

Saab is going bankrupt and Saab owners in the U.S. are on tenterhooks. Joe Wiesenfelder, executive editor and senior analyst said the cars will lose their value fast. "Cars from a dead brand are perceived as less valuable, and perception becomes reality," he said in a statement. "If you're going to drive yours forever it shouldn't affect you too much, but if you're in an accident, it's much more likely your insurance company will total your car and present you with a much-smaller settlement check than you'd expect."

He notes that when automotive brands have gone wheels up in the past, their warranties were honored by their parent companies (e.g., Pontiac and Mercury). Saab, however, IS the parent company for all practical purposes, he says. "We're in uncharted territory and there is some uncertainty around continued warranty coverage. The company itself is liquidating rather than restructuring and remaining in business, which could result in lower resale values, depending in part on how much warranty support remains."

On the other hand Saab dealers are likely to offer Saabs at great prices. "Granted, the vehicles might have lower resale value, but if you're paying less to begin with, you're not taking as much of a depreciation hit as an owner who paid top dollar for a new Saab a year ago. We advise you to confirm that there will be warranty coverage before buying."



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