As the automotive industry digests the news that embattled Swedish automaker Saab filed for bankruptcy liquidation this morning, current Saab owners and prospective buyers likely have serious questions.
Breaking: Saab Stops Covering Warranties
Saab is seeking a true liquidation, meaning there will be no future buyers, and Saab will no longer make new cars. GM sold Saab in 2010 to an independent firm in Sweden. At the time, GM said it would honor any Saab warranty because the cars were still built with GM technology and parts.
A Saab representative told us there are no details at this time about future warranties and who will honor them.
New Saabs on dealer lots will likely lose value as you read this story. Right now there are 1,659 Saab models in Cars.com’s new-car inventory.
- 9-3: 781 units
- 9-3X: 49 units
- 9-4X: 135 units
- 9-5: 692 units
- 9-7X: 2 units
We expect shoppers will be able to get a good deal on a new Saab even with low advertised incentives. Saab currently is only offering financing deals of 1.9% APR for 72 months on its lineup through Jan. 3. The reality at the dealership may be much different.
However, buying one of these last Saabs poses significant risks:
- A new Saab will have a lower resale value versus a comparable brand like Volvo. Yet, if the deal you’re being offered is good enough, it may erase that depreciation.
- In the most recent Vehicle Dependability Study by J.D. Power and Associates, Saab finished above the industry average in terms of problems per 100 vehicles, finishing 13th on a list of 34 brands.
- This doesn’t alleviate the fact that owners will have a harder time finding a place to service their vehicles even with a valid warranty.
- Parts for new and used Saabs may be harder to find as demand for them wanes because of weak sales over the past few years.
- If you currently own a Saab and plan to drive it into the ground, don't worry. If you're planning to sell it, though, the automaker's demise will diminish the car’s resale value. When you go to sell it, don't be surprised if the value has dropped.
- If you wreck your Saab, it's entirely likely the insurance company will decide to total it and offer you a reduced amount for the remaining value.