Buying a Saturn is Not a Good Idea
There are now about 12,000 Saturns left for sale in the US and GM is hoping to get rid of them all by January 2010.
They will likely need to offer some sweet incentives to sell the remaining inventory. Thus, some car shoppers are wondering if it makes sense to buy a Saturn and take advantage of these incentives.
The residual values of cars that are discontinued usually fall considerably, meaning that when you're ready to trade-in the car down the road, you will get a lot less for it.
If GM offers an additional $1,500 - $2,000 incentive, you'll basically come out even. If you intend to keep the car forever, then it makes more sense to consider buying.
In addition to a drop in residual values, Saturns will become harder to maintain and repair. Although GM will honor all Saturn warranty claims, you will need to take the car to other GM dealers which don't necessarily specialize in Saturn vehicles. This can lead to shoddy work and limitations on parts being available in a timely manner. Maintenance can also be an issue if the closest GM dealer is in another town.
We recommend not buying a Saturn if your goal is to save money. The only reason you should buy one right now is if you truly love Saturn cars AND you're willing to keep the car for a long time (at least 7 years).
3 Steps Every Car Buyer Needs to Take to Save Maximum MoneyThe key to getting the best deal is to gather price or lease bids from as many local dealers as possible. Then shop that best price around until no one can beat it. Here are the steps:
Step 1 Get Prices From My Trusted NetworkSelect the vehicle you're interested in to see if there are local dealers in my network who will provide you with their best upfront price. You will get direct access to an internet sales manager who you can further negotiate with online (no need to visit dealership).
Step 2 Get Prices From TrueCar / CarsDirectTrueCar, and CarsDirect are my top 2 online price quote recommendations. These services show you pre-negotiated prices from dealers closest to you - and the deals are usually pretty decent. But remember, you can still negotiate further.
Step 3 Complete my ChecklistFollow this up with my checklist to make sure you squeeze out every last bit of savings.
- Gregg Fidan
Each week, I'll keep you up-to-date on the latest car deals and news that might affect your purchase. This includes...
- Best Rebates, Incentives, and Lease Deals
- Latest Car Buying Scams and Tricks
- The Best & Worst Time to Buy a Car
- Which Cars You Should Avoid