Saturn Cars Report

Posted on 29 December 2009 by Ragepk

saturn cars

Saturn Cars Report
As the year’s end approaches, there are tons of rebates available to car buyers, and sales managers are expected to be especially willing to negotiate in order to move inventory. Also, if you close the deal before January 1, there’s a bonus: You can deduct taxes and fees on your 2009 federal income tax return.
The cars will be moved off the lot to join service-vehicle or rental-vehicle fleets operated by the dealers, where they can be sold for a more attractive price, according to the report. But the dealers will have to market the cars as used since they are technically the vehicles’ first owners.

At the end of the day, buyers could see prices slashed on these cars by as much as 46 percent. But, as the report notes, buyers will face certain risks: future resale value might be hurt by the fact that it was bought as a used car. And there may be reluctance to purchase a car from an “orphan” brand, even though GM has said it will honor existing warranties.

The offer, which is good until Jan. 4, will cost the automaker a hefty sum, though it won’t disclose the exact amount.

According to Ward’s Auto Reports, 14,500 new Saturns and Pontiacs filled dealerships at the beginning of December – about two or three months worth of inventory.

Car data service Edmunds expects GM to sell 3,500 Saturns and 6,800 Pontiacs in the month, which would leave more than 4,000 cars on the lots – cars GM is desperate to get rid of.
Would-be car buyers are understandably concerned about the prospects of buying a car that won’t be made in the near future. Will warranties be valid even after the brand is discontinued? Will parts be available when repairs are necessary? Will it be easy to find a mechanic who knows how to fix the car? Will the resale or trade-in value of the car hold up?

The answers to those questions, respectively, are yes, probably yes, probably yes, and probably no.

The resale/trade-in value is what could be the deal breaker—then again, if you’re paying a price that’s dramatically marked down from the sticker, a lower resale value is not that big a deal. And if you plan on driving the car until it dies, you’re not worried about resale value.
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