Article: Second batch of new Saabs at the port to be auctioned on July 24, 2012

[Dave T]

You can view the page at http://saabworld.net/content.php?r=9...N-July-24-2012

[nordwulf]

There simply isn't much profit for dealers considering the risk as Julie mentioned. Ally should either go through the trouble of selling cars directly to consumers or do the fleet / export. I was considering one of the port Saabs but you still have to keep in mind there is no manufacturer support or warranty included.

I don't know for sure how much profit a dealer needs to make but I assume $2000-3000 seems reasonable to cover cost, overhead, sales commission and so on. Perhaps more for the added risk. Then there is transport cost from Newark (or other locations) which can add $1000 or more. Want an aftermarket warranty? Add another $2500. That's already $5,500 - $6,500 minimum you have to add to the floor price. Plus auction cost, any repairs that need to be made or recall work that has to be done. Remember these Saabs have been sitting outside or in a warehouse for a year or more.

It may be worth it for the more expensive models but not for most 9-3. And even with the other models like the 9-4X and 9-5, keep in mind the parts situation is still quite unsure for the long-term.

If you buy one of these Saabs because it is the last new Saab you can buy, by all means go for it. But it doesn't seem a particular good deal if you just want one for a 'good deal'.

[Daddy Rich]

the dealership i purchased my car from got at least 4 of the leftovers from the june auction. they sold them with a 4 year aftermarket warranty for approx 30-35% off of the original sticker prices. i don't imagine they had a ton of room to negotiate considering the costs of transport, preparation and the warranty. however, all four were sold rather quickly

[JulieG70]

Julie at Kelly SAAB of Lancaster updating you all - though we are not participating in tomorrow's sale with Smart Auction, we will possibly participate in future sales. The first ALLY auction yielded us one sale -which was not a terribly profitable one- but we do feel that many of the hiccups experienced were due to this being our inaugural experience and will likely not be problems for future sales. The timing is not good for us to participate in tomorrow's auction but please keep me in mind either if you do not get the car you want this round or if you wish to wait it out for other choices. You can reach me at either 888-328-7279, ext.1032 or juliegardner at kellycadillacsaab dot com.
Thanks and Good Luck!

[nordwulf]

Julie, can you explain a bit more about the process when someone is interested in one of these Saabs? What kind of pricing are we talking about? Will your dealership add a percentage or fixed amount to the successful bid amount for auction / transportation cost and dealer markup? Do you require a deposit before you submit a bid?

I think it will be a lot more interesting for potential buyers (including myself) if you know about all details. A full list of available cars with VIN numbers and equipment would be very helpful as well.

[Dave T]

Let's hear it Julie! She writes that $2000 is a reasonable dealer overhead cost and that the first auction had some successful bids for about 50% of MSRP. The average successful bid was 57% of MSRP. One car didn't have Onstar or Bose as originally noted but the dealer was unable to get credit for that as is possible in many car auctions.

I presume that two ways to go about it is to agree on a fixed price and the dealer can bid taking into account their costs. Alternatively, perhaps the dealer is willing to place a certain bid and add costs on top of that.

Julie has posted a series of posts elsewhere. With her permission, these can be reproduced on Saabworld or she can edit them to appear as one blog or article.