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Yes, it’s true.
According to Business Week magazine, Saab’s own 9-7x SUV is the second most leased vehicle in the US market. Of course, this isn’t by straight lease numbers, it’s by lease penetration. There were only 2,321 units of the 9-7x moved in the 12 months to 31 July 2008. That’s not a high number. BMW write more lease business than that in a month. It’s the 82.2% lease penetration that puts the 9-7x at #2 on the list. Only the BMW 7-series is higher.
That lease penetration figure represents the percentage of vehicle sales that involved lease contracts. So of those 2,321 9-7x’s sold, 1,908 of them were leased. And I can tell you with a high degree of certainty that a large proportion of those leases were to GM employees. It’s their inexpensive way of moving up to a better SUV.
Seven of the top 10 leased vehicles in the US in 2008 were German and the most represented Teuton was BMW, with three vehicles. Mercedes and Audi both had two.
The Business Week article gives a great overview of how leasing works. It’s a really good primer for those who are unfamiliar with the process. It’ll give you a better understanding as to why leasing incentives for GM are out the window, making way for bigger cash purchase incentives and low interest loans.
Right now, in the US market, the cash incentives are in addition to GM Employee Pricing. This means a Saab 9-3 2.0T Sport Sedan’s selling for around $25K instead of the MSRP of around $29K. This isn’t applicable to lease purchasing.
The customer cash on that 9-3 is $2,000. Customer cash of a whopping $8,000 is available on the Saab 9-7x, an indication of just how far they’re willing to go to get people buying this vehicle instead of the traditional lease.
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12 responses so far ↓
1 Bernard
// Aug 27, 2008 at 11:28 pm
The article doesn’t really mention that a lot of leases are done through businesses.
Leasing provides fixed costs and easy tax write offs, especially if your business “needs” to have a relatively new car.
Plus, no small business can afford the financial uncertainty of an off-warranty BMW…
2 Andy Rupert
// Aug 28, 2008 at 12:21 am
That is interesting. With the relatively high price of gas, you would think people would be leasing smaller vehicles.
Our dealership just dropped the price on the two 9-7x we have in stock and still nobody is biting. I’m not sure why. They are a good SUV. Perhaps it is the lack of a third row of seats. Most of our customers are looking for that.
3 Robin M
// Aug 28, 2008 at 1:35 am
Andy, may I please ask for your companies web address if you have one, thank you. Robin.
4 Brad G.
// Aug 28, 2008 at 1:55 am
The rebates were enough to get me to bite. Picked up a Black/Black 9.7x on Monday.
5 Andy Rupert
// Aug 28, 2008 at 2:11 am
It’s listed at the end of my 9-7x article here at TS.
6 swade
// Aug 28, 2008 at 2:22 am
Congratulations, Brad.
Pictures and details on the bargain would be more than welcome. Send to swade99-at-gmail.com
7 Gunnar
// Aug 28, 2008 at 3:33 am
How interesting, I wonder why the 9-7X specifically.
8 fuzzi from luxembourg
// Aug 28, 2008 at 3:58 am
but the 9-7x is not a real SAAB !!!
my car :
convertible 9-3 1,8 t, automatic, 04/2007, color white
The heritage isn’t ideal, but I’d welcome any 9-7x to a Saab Club meet. – SW
9 Michael
// Aug 28, 2008 at 7:34 am
Thank you for the link.
Now, I understand why Bmw was been having a good time in Europe.
Almost every Bimmer in Germany is leased and afterwards shipped to Russia, Belarus or another exCommi-country. Getting rid of the Iron Curtain was good for Bmw.
10 zippy
// Aug 28, 2008 at 9:55 am
Brad, welcome to the Saab family!
I look at the 9-7X like this. Yes, the 9-7X isn’t a true Saab – having said that the last ‘real’ Saab was the classic Saab 900 – but without those annual sales the company would have been denied the profits that the 9-7X adds to Saab’s bottom line as I expect the profit margin on said vehicle is quite good.
11 Brad G
// Aug 28, 2008 at 11:51 am
Glad to join the family. Even if I have to sit at the apostate table with all the 9-2x guys.
12 Dippen
// Aug 28, 2008 at 5:59 pm
Brad G> congrats and welcome to the saab-family!:)