US incentives – the “oh crap!” edition

In response to the tanked 9-3 sales in the US in February, Saab USA have begun offering cars through vending machines in college campuses at a buck-a-horse.

Ok, not quite, but……

Incentives on 2006 models:

9-3 Sedan – $4,000 customer cash on the 2.0T and $5,000 customer cash on the Aero.

9-3 SportCombi – $6,000 customer cash on the 2.0T and $7,500 customer cash on the Aero (I’m very close to breaking my no-expletives rule at this point….)

9-3 Convertible – $6,000 customer cash

These deals are also subject to a $1,000 loyalty bonus for current Saab owners.

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But that’s not all, if you don’t want to go the customer cash option you can opt for 1.9% financing if you’re approved (Are you breathing? Good. Sign here….)

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There’s also customer cash offers on the rest of the 2006 Saab range:

Saab 9-2x – $5,000 customer cash

Saab 9-5 Sedan – $8,000 customer cash (#^$!)

Saab 9-5 SportCombi – $8,000 customer cash

Saab 9-7x – $6,000 customer cash

The 9-5 and 9-7x offers are also subject to a $2,000 loyalty bonus if you’re already a Saab owner. Yikes!!!!

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There’s some 2007 offers as well, but obviously these aren’t as generous as the 2006 clearance incentives. They’re mostly hovering at $1,500 customer cash for the 9-3 and 9-5 range and $3,000 for the 9-7x.

There’s loyalty cash available on 2007 models as well and if you want to go the lease option then there’s 0% financing available.

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Great for the customers right now, but I’ve got a bad feeling about all this….

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19 Comments

  1. Great time to buy,not a good time to get rid of an older model though, I’ll give you some loose change for your 03/04 93ss.

  2. When looking for my car in late January, there was not much left that I would have wanted. If you want an Aero 9-5 or 9-3, yeah right, there are 4 in the country, with a manual transmission. Just 4!!! So these wild incentives dont mean alot if they dont have what you want.

  3. Swade, thanks for outlining the incentives for us US peeps.

    I’m disappointed that the ’07 rebates have gone unchanged thus far, but alas, it is still early in the year. If I am not mistaken, I think the ’06 rebates are the same also, since January. But the only ’06’s I’ve found are Vert’s scattered here and there. I’ve written to Florida, Georgia, South Carolina, Alabama, and Mississippi dealers, and all seem to be out.

    Funny thing, according to their website, my local dealer still has one ’06 9-3 SS Aero and one ’06 9-3 2.0T Combi. The Aero still peaks $27k (with GMS price minus $5k rebate minus $1k loyalty) and the Combi is stripped and is POLAR WHITE. I like WHITE as much as Swade likes hugging a 9-2x. 😉

  4. My local dealer lists only three ’06 models in stock, 2 9-3 sedans and 1 9-3 SportCombi, all 2.0T.

    But the 9-3SC is Laser Red, and with the discount, can be had for about US$ 26,500! Such a deal!

  5. Do you still get the loyalty bonus for trading in a 9-2x?

    😉

    Thank you, ladies and gentlemen. Thank you. I’m here ’til Tuesday. Try the fish.

  6. lmao! Swade, i didn’t laugh at the 9-2x comment until after I read your follow up comment… heehee…

    That’s so much cash off! I feel bad for Saab :(…

  7. *smiles* Thanks Swade. *sigh* Man my side hurts from all of the poking. j/k

    Get this. If I buy a 9-3, 9-5, or 9-7 I get the loyalty bonus. HOWEVER if I fell and hit my head on a rock on the way in to the dealer and traded my ’05 9-2x up for an ’06 9-2x, I don’t get the loyalty bonus.

    The thing is, they aren’t offering the loyalty on the purchase of the 9-2x’s. Which seems oxy-moronic in a way becuase wouldn’t they want to offer all that they can to get rid of the remaining ’06 9-2x’s????

    For all interested, it is my understanding that you get the loyalty bonus merely for having a currently registered Saab in your household, it does not have to be the trade-in. So, if you have one and want to add to the stable, you still can qualify fr the loyalty!

    Great idea, I say! To my knowledge, no other arm of GM is doing the same. In fact, the only way to learn of the Saab loyalty is through the dealership and SaabUSA.com. It does not disclose this on any GM site that I’ve noticed.

  8. If memory serves, they had $750 of bonus cash on top of these same rebates in early February.

    If a 9-3 SC Aero could be found with these discounts, it’d be awfully tempting.

    On the loyalty bonus, it’s the least they could do as compensation for killing any hope current owners might have had of a decent trade-in value.

  9. I am very concerned about the health of SAAB as a whole right now. Hopefully I’m just overreacting.

    I know I’m being pretty U.S.-centric, but considering that the U.S. is SAAB’s largest market, I don’t think that worrying about the latest sales numbers is unjustified.

    A few years ago SAABs were flying off showroom floors in the U.S. due to the GM Employee Pricing program. While this moved product, I believe SAAB was taking a loss on every car they sold in this program.

    This year you can get a 2007 9-3 starting under USD$27K in the U.S. As has been pointed out, this is the same price as a loaded Toyota Camry or Honda Accord. Add to that the new incentives, which would drop the price of a 9-3 to around USD$25.5K.

    I’m not so worried about the huge incentives they’re offering to clear-out the 2006 models because as has been pointed out, they’re pretty much already gone.

    The problem I have with the ’07 9-3 going for USD$25.5K is that they CAN’T be making money selling them for that little. Especially considering how expensive it is to manufacture cars in Sweden (which is why they’re moving to Russelsheim in a few years).

    There are some products you can sell while taking a loss on each unit sold because you make the money back on the “back end”. For example, they practically GIVE AWAY razors because they overprice the blades and they make that money back in spades. Same with video game consoles. They take a loss on every video game unit sold because they can make it back in game licensing. Cars are not this way. Especially with the warranty, they’re not going to make back the money they lost on a sale.

    It is also a little scary to note that while SAAB 9-3 sales dropped by 500 units in February, this can’t be blamed on the weather for two reasons: 1. Sales of other SAAB models for the most part were flat and 2. AUDI had a sales INCREASE in the same month.

    With the AUDI A4 being the 9-3’s biggest competitor in the States, I’m guessing those 500 sales SAAB lost on the 9-3 went to AUDI. Maybe with the really bad weather buyers perceived a need for Quattro.

    The base AUDI A4 already sells for almost USD$2K more than the SAAB before discounts yet they still posted a sales INCREASE while the 9-3 had a sales DECREASE.

    And as I pointed-out before the 9-3 is only four years old. SAAB USA has got to be PRAYING that the 2008 refresh and addition of AWD option will save them. But they still have to suffer through 2007!

  10. Just two words to explain the sagging sales:

    Consumer Reports.

    People in the U.S. buy into that publication verbatim.

    DON’T get me started…

  11. I think is great news…
    Ok residual values may start to be affected, but The part exchange allowances are fantastic at bring more customers to the saab brand.
    The important piece to be aware of here is these are 06MY cars. The price has been now adjusted in preparation for the face-lift.

  12. I can not say much about the incentives being offered now as my dealer has only 2 – 9-7X’s from last year.
    When I bought my 2003 9-3, it was in November of 03. I received $7,000 of my $29,000 Linear. The good news is that it has not depreciated more than I have been paying it off. The bad news is I am only breaking even. It will be hard for me to buy a new SAAB without a big incentive as depreciation would eat me alive. This is the only downside of my current SAAB experience. My 9-3 has been a great car with very few issues (unlike numerous friends with their BMW’s and M-B’s.) SAAB really deserve better than needing to rely on incentives, and I am not sure how GM could change that.

  13. Two simple reasons why SAAB sales are hurting in the US:

    1) consumer reports

    2) they stopped making beastly hatchbacks in ’02.
    the 9-2x? not beastly.
    the 9-3 Viggen? BEASTLY.
    American drivers want “scary fast” vehicles.

    Ok – that’s just my opinion.
    And yes, i want to get a Viggen. ;->

  14. Oh – and about finding a vehicle in the ‘States with manual transmission? GOOD FREAKIN’ LUCK! I forget which famous philosopher said it:

    “Driving a car with automatic transmission is like having sex with 9 condoms on”.

  15. Gripen is probably correct about losing sales to Audi.

    The sales drop off in year 4 is normal for most cars – it is the lack of product range that is killing SAAB. To take Audi as an example I ( if I liked Audis) can spend from £15k to £83k before options in any trim combination. If the A4 sells badly there are about 8 ither models to boost sales.

    Jaguar are in exactly the same mess as SAAB for eaxctly the same reasons, lack of product and a frustrating attitude of “if it is not in our heritage we can’t make it”.

    Build the 9-1 (mini size) and a 9-2 (Astra size) and a large and small off roader. Personaly I dislike 4x4s but lots of people love them and they make the manufactuer shaed loads of cash. Just ask Porsche. SAAB could even have it built in Valmet

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