Saab Stops Covering Warranties
As it falls into liquidation, Saab confirmed today that will no longer honor warranties on any models. This includes not only cars still on dealer lots, but all 2010 and 2011 models already sold. If you bought a Saab while the automaker was still part of the GM stable, warranty work will be covered, GM told Kicking Tires this afternoon. The sale was completed in February 2010.
The bankrupt Swedish automaker told dealers yesterday it would stop covering its policies, according to Automotive News. Warranty booklets were to be removed from cars on lots, and all cars should be sold "as is," according to Automotive News.
All warranties have been suspended, regardless of model year, Saab spokeswoman Michele Tinson said, but "Saab owners should be advised to keep receipts of all related warranty work done or services performed until further notice." A service representative at True Saab, a dealership in suburban Chicago, confirmed the news, saying the dealership was charging customers for all Saab repairs and maintenance. The dealership had no immediate provision to offer its own replacement warranty, a sales representative told us.
Saab dealers are expected to slash thousands of dollars on most Saabs to move these warranty-free cars. Of Cars.com's national new-car listings, 9-3 sedans have a median listed price of around $34,000, while 9-3 convertibles list for a median $44,000. Those don't reflect steep discounts yet: With destination charges applied, the 9-3 sedan's sticker ranges from around $30,000 to $42,000, while the convertible spans about $40,000 to $47,000. The flagship 9-5, meanwhile, appears to be dropping faster, with median prices on Cars.com around $45,000 — for a sedan that roughly spans $39,000 to $60,000.
Prices could drop even more. True Saab already lists discounts of $7,000 or more, with some cars getting more than $11,000 off the MSRP. The cash saved might allow you to buy a third-party warranty — or save enough cash to pay for any future repairs — but given a possible drying-up of Saab parts, such warranties should come with a strong caveat emptor. The current 9-3 has average reliability, according to Consumer Reports, while the short-lived 9-4X crossover and 9-5 sedan have little reliability history.