SaabCentral Forums banner

1 - 20 of 22 Posts

·
Registered
Joined
·
8 Posts
Discussion Starter #1 (Edited)
Hello everyone, I recently decided to check out the GM employee discount program that they are running at my local Saab dealership. I decided to look at the 9-3 Arc, Linear didn't have the performance I was after, Aero a bit too pricey for me (I just graduated from college).
Here is what I came home with:

05 9-3 Arc
Price to me after rebates etc. $27495 (I think)
Includes: xenon's, 17 inch wheels, and heated seats.
Trade-In: (2000 civic Si, 80K, a few dents) $8200 (exceeded my expectation)
Cash Down: $1500
Int rate: around 5%
Taxes: ~$1550
Dest/etc.:$850
60 month payment: $369.65
What do you think? Is there room for improvement or is this an excellent deal as GM is advertising?
Thanks in advance for any input.
 

·
Registered
Joined
·
601 Posts
The cash price looks geat, that's what I paid in October for a leftover 04 Arc, the financing is where it gets tricky. The payment looks a little in the high side since you look to be financing about 19k You might want to look at www.edmunds.com and use their calculator, that might help for the monthly payments.
 

·
Registered
Joined
·
299 Posts
a bit off topic, but imo it doesnt make sense to finance a car over 60months. you are loosing a lot of money this way which otherwise would earn you interest, so regardless of the price you bargained for your purchase, it cant ever be a good deal if you are financing it like that!
(i estimate you are paying roughly 4500 for the credit? you would need to get this amount off of the price in addition to "usual" reductions)
 

·
Registered
Joined
·
299 Posts
zykur, you were reading my mind:)

and petro11
btw:
i also just graduated and would love to have a new car (the vert specifically), but if i were to buy it now, it would cost me 2000 (5%int)more than if i were to pay cash (next year march, i am counting every day...). my current car is ****ty, but why finance if it still works?
 

·
Registered
Joined
·
8 Posts
Discussion Starter #5
The car will be financed for 60 months. With payments of 369.XX I could easily pay ahead and get it finished in 4 years. Interest rates have gone up considerably in the last year. The lowest rate I found was 4.99 at my mothers credit union. Every quarter percentage point is about $3.00 per month.
My total financing will be on 19589.50.
At 48 months and 5.25% payments = 453: Total interest: 2154.50
At 60 months and 5.25% payments = 372: Total interest: 2730.50
 

·
Registered
Joined
·
8 Posts
Discussion Starter #6
Well for one thing, I would never dump a whole bank account on a single purchase. Especially 30K. That is why I am only putting 1500 down. If you had a yearly disposable income of 100K, then a 30K purchase is a different story. My disposable income will be approximately 20K next year. That is after taxes, 401K, IRA, savings acct contributions, and other misc expenses.
 

·
Registered
Joined
·
601 Posts
The part that scares me about any 60 month loan is the resale in 5 years will be awfull, I had a 99 9-5 that was worthless on the market after 5 years.
I would shop the loan around to a couple of credit unions and maybe lendingtree and make sure they are not killing you on the financing. Like I said I think the cash price is a good deal.
 

·
Registered
Joined
·
297 Posts
Becareful when financing. If you run into any problems with car, you will be in a losing situation, especially if it happens early on within year 1 through 2. Make sure you are cool with the mileage restrictions because if you do go over you might have to buy out car and try to sell on your own and we all know that the resell value of car isnt as good as others. Just my two cents.
 

·
Registered
Joined
·
21 Posts
I don't know the valuation numbers on your Si, but make sure they are offering you better than wholesale on it, preferably retail. When trading in something, you want to go either wholesale to invoice (wholesale for trade-in, invoice for the new one), or retail to retail (retail value for your trade, retail msrp for their new one). NOW, the GMS price (GM Employee Disc 4 Everyone) they are offering is essentially the same as retail AS FAR AS DEALER PROFIT ON THE DEAL GOES, because it is a factory to dealer incentive and the dealer is reimbursed the difference by GM (Saab) so they earn the same as if there were no incentve program in place and they sold it to you at msrp.

Therefore, make sure they are offering you at least close to retail for your Si...

Otherwise they are excessively profiting from the deal.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #10
SaabNoob said:
I don't know the valuation numbers on your Si, but make sure they are offering you better than wholesale on it, preferably retail. When trading in something, you want to go either wholesale to invoice (wholesale for trade-in, invoice for the new one), or retail to retail (retail value for your trade, retail msrp for their new one). NOW, the GMS price (GM Employee Disc 4 Everyone) they are offering is essentially the same as retail AS FAR AS DEALER PROFIT ON THE DEAL GOES, because it is a factory to dealer incentive and the dealer is reimbursed the difference by GM (Saab) so they earn the same as if there were no incentve program in place and they sold it to you at msrp.

Therefore, make sure they are offering you at least close to retail for your Si...

Otherwise they are excessively profiting from the deal.
-Thanks for the input about GM covering the incentive. Do you think offering them $1200 less than what they quoted me could get me out the door for about 700-900 less?

I believe retail on my Si is around 9400. However, I have a dent on my hood about 5 inches in diameter, I need new brakes all around, and 2 new tires. Like I said, 8200 exceeded my expectaions by far. As far as financing and warranty goes, I should have my car paid off or pretty close to it by the time the 4year warranty expires. I definitely plan to pay ahead on the principle.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #11
SwizzDrums said:
Becareful when financing. If you run into any problems with car, you will be in a losing situation, especially if it happens early on within year 1 through 2. Make sure you are cool with the mileage restrictions because if you do go over you might have to buy out car and try to sell on your own and we all know that the resell value of car isnt as good as others. Just my two cents.
Well 1-2 years is covered by the warranty. What mileage restriction? The 50K for the warranty?
Resale value to me with this car is besides the point. I plan on holding on to it until I am at least 30 (8 years). By then any car I buy will be worth nada. I bought the civic to get me through college and it did its job. It's just time to buy something a bit more grown up. Plus I don't want to be driving clients around in a little rice burner.
 

·
Registered
Joined
·
21 Posts
Petro11 said:
-Thanks for the input about GM covering the incentive. Do you think offering them $1200 less than what they quoted me could get me out the door for about 700-900 less?
It never hurts to drive a hard bargain. Try to be firm with them. Time is on your side, since the GMS pricing is on until July 5th. Tell them the deal they are offering is good, but you KNOW it can be better and that they have room to haggle. Because they always do. Saabs do not appear to be high in-demand cars, so that puts the buyer in control of the deal. I think you stand a fair chance of getting out the door for $1000 less than what it is now.
 

·
Registered
Joined
·
2 Posts
I am shopping for 2005 9-3 arc. Is it true that you can't negotiate the GM Employ Price? I am trying to negotiate and the deals don't budge. They keep saying the price is final. Just want to know if it is true. The quote that I get for 9-3 Arc, automatic transmission, metallic paint, sunroof and heated seat is $28,950. Good deal?

Thanks a lot.
 

·
Registered
Joined
·
1,530 Posts
ShadowR said:
I am shopping for 2005 9-3 arc. Is it true that you can't negotiate the GM Employ Price? I am trying to negotiate and the deals don't budge. They keep saying the price is final. Just want to know if it is true. The quote that I get for 9-3 Arc, automatic transmission, metallic paint, sunroof and heated seat is $28,950. Good deal?

Thanks a lot.
That's almost excatly what I paid for mine 2 years ago, for pretty much the same car. I had $4K in rebates (incl $1K for Olds owner) and $5100 off sticker. It's a good deal, but I think there may have been better with some better rebates lately.

I have heard that there are no additional discounts w/ the employee pricing this month. I think this is a real good deal for cars that weren't getting big rebates, but since the Saabs have been, it's probably just an OK deal.
 

·
Registered
Joined
·
159 Posts
Ask to see the invoice showing the MSRP, Invoice, and GMS price. That information is clearly written on the computer printout. Subtract incentives from GMS price to get your "cash price." Then add taxes, registration, etc.
 

·
Registered
Joined
·
21 Posts
ImolaDetail said:
Ask to see the invoice showing the MSRP, Invoice, and GMS price. That information is clearly written on the computer printout. Subtract incentives from GMS price to get your "cash price." Then add taxes, registration, etc.
I just found out that the GMS price (GM Employee Discount) is as follows:

GMS = Invoice - Holdback

(Holdback = 3% of MSRP)

So unless there are rebates or other cash incentives they probably will not go below GMS.
 

·
Registered
Joined
·
159 Posts
SaabNoob said:
I just found out that the GMS price (GM Employee Discount) is as follows:

GMS = Invoice - Holdback

(Holdback = 3% of MSRP)

So unless there are rebates or other cash incentives they probably will not go below GMS.
Exactly right. The problem is that most ppl do not make sure or know how to make sure that they are getting the GMS price. The dealer does get a fee for processing the deal though. I am not sure if there are other incentives such as rebates right now. I would bet that they are.
 

·
Registered
Joined
·
1,322 Posts
These prices are good but probably not that much better than you might do at model year end, particularly with the V6 being introduced. GM is doing this because they feel an urgent need to move product and the way the U.S. automakers are having it right now, I don't see the atmosphere for wheeling and dealing to be any worse then, and perhaps even better. The downside could be a jump in interest rates but the upside could be socking away cash now to increase the cash down amount so that you're not financing quite as much.

That's a pretty good chunk of change for someone right out of college to finance, or at least by my way of thinking. If you're going to finance for that long you might consider CPO (certified pre-owned) which at least comes with a much longer warranty so that you don't find yourself still making payments and having to pay to maintain the car at the same time.

New cars sure are sweet though!
 

·
Registered
Joined
·
259 Posts
I certainly have no problem with recommendation to get a CPO car.
However, the CPO car extension covers something like 6 years or 100,000 miles--and the clock starts ticking from the time the car was put in service.
So, for most, the warranty period is about the same length of time, or maybe a bit shorter.
 
1 - 20 of 22 Posts
Top