Is Saturn's New Pricing Strategy a Change for the Better?

[Charlie]

Do you think that Saturn's new pricing strategy (http://www.saturnfans.com/Company/2004/pricestrategy2005.shtml) is a step in the right direction?

Post your thoughts!

Thanks,
Charlie

[ChrisION]

I voted yes, because of the new 5-year bumper to bumper warranty. But they are still offering cash back... I thought that is what they were trying to avoid? :dazed:

[David 93 SL2m]

It seems to me that the 5 year / 60,000 mile warranty is indirectly being sold at $1,000 for the IONs and $1,250 for the Relays and VUEs, and the financing is indirectly being sold at $500 for the IONs and $750 for the Relays and VUEs.

[100KSW2]

Hmmm, I think it is too soon to tell whether this will work - and also whether Saturn will be able to get through model year 2005 without offering additional rebates. Their current lineup is the weakest it has ever been: Leftover L, Warmed-over ION, Recalled VUE, and Unproven Relay. None of these vehicles has been able to recapture the enthusiasm - or generate the almost 300,000 yearly sales - that the first generation S Series had in 1993-1995.

I like having options. This sales menu approach is interesting. Are the products going to be as interesting? Or competitive? I'm still waiting to see the revised ION, and new Relay to decide for myself.

[spencerb]

Originally posted by David 93 SL2m
It seems to me that the 5 year / 60,000 mile warranty is indirectly being sold at $1,000 for the IONs and $1,250 for the Relays and VUEs, and the financing is indirectly being sold at $500 for the IONs and $750 for the Relays and VUEs. That is exactly true!

I will be laughing at the people that praise Saturn for offering a longer warranty now. Saturn has always offered a longer warranty, you just had to pay extra for it, and that is exactly what you are doing for '05.

The pricing structure allows Saturn to advertise longer standard warranties and a simpler no-hassle experience. It's interesting to note that Saturn will no longer be participating in the GM incentive programs.

What makes me very happy is that Saturn wants to stick to no haggle and hassle pricing. This is a step away from traditional wheel-and-deal pricing, which I was afraid Saturn was going towards.

Another couple notes: Saturn didn't increase prices that much, so actually for '05 the cars are cheaper since you can get $1,000+ back to get the '04 warranty. Also note that the chances of needing more than $1,000 of repairs in the 2 years/24,000 miles after your standard warranty is very, very slim.

[scorpio_e]

I would say Saturn is going back to the basics. The rebates have you playing a guessing game. Will the rebate increase-decrease or stop?

The vouchers are another ploy to make sales numbers. I can not complain. I got a $3000 and $750 in vouchers on a 2004 last week !!!!

I think a good point was made. The extended warranty is being sold. At least that is the way I look at it. I think the 5 year should be standard. :yes:

[04AWDV6VUE]

Do you think that will help with resale values, since there won't be so many incentives on the vehicles? When I read that they aren't going to participate in GM's incentives, I am glad I got my VUE now, and got $5000 total cash back.

..........
'04 AWD V6 VUE (current)
'00 SC2 (former)

[spencerb]

Resale values are bad for any used car, but that is mainly because of all the new car incentives. Demand for used Saturns isn't as high, and that hurts too.

This new program effictively lowers the price of the '05s. I highly prefer a no-haggle price that is low in the first place versus a no-haggle price with incentives that change month to month.

It's only a matter of time before we see a TV ad touting all Saturns with a standard 5 year warranty. I honestly believe that will considerable help sales. Even though you are really paying $1,000+ for that warranty. It's just a nice little marketing "trick" that isn't so tricky. Not as bad as Hyundai's "10 year" warranty that in reality covers very little.

[David 93 SL2m]

Now Saturn needs to bring back the 30 day / 1,500 mile money back guarantee...

[OhioVueBoy]

I think it is a great idea. As an employee of a retailer, I couldn't even keep the incentives straight. It caused confusion among managers and sales consultants, too. This is a good setup, now if they get their marketing down, and bring back the 30/1,500 we will be on a roll.
~D.J.~

[eRic 02sc2]

the "new" strategy is more like an old fashion rebate but with new terminology. instead of calling a rebate a rebate, it's called "personal allowance". the no haggle no hassle days are over. "qualifying" customers get the good deals.

[revue]

Confusion regarding rebates/incentives/vouchers is a communication problem. The total price is the most important, which for the 05s is now higher.

I give them 3 or 4 months before they go back to some sort of incentive program.

[L300Boy]

While the warranty is nice to hear, the "simplified" pricing strategy is still just as confusing.

Like before, two people are going to pay vastly different prices depending on what exceptions they took.

I can get 3.9% at 60mos at my credit union, so one could double dip from that financing allowance option :)

[Jaseball]

I will be anyone here that the minute the '05's don't sell well or the minute the '06 cars are on the way Saturn will perform firesales.

You can't abandon 'no haggle,' pricing for 2-3 years and have dealers offer special discounts and have all these hidden incentives and widely advertised incentives, while keeping the price of the car the same.

Saturn should have dropped prices $1K+ for the Ion as well as offered the 5 year/50K warranty for all their cars.

This either/or deal is really weak and I don't believe all dealers will stick to no haggle if inventory sits on the lots.

[mikthehickNC]

i'm going to the affirmative

[kinless]

Originally posted by David 93 SL2m
Now Saturn needs to bring back the 30 day / 1,500 mile money back guarantee...

Who says they took it away? I am currently under this guarantee after having just bought my 2005 L300 last month.

And for the record, there was no haggling when I bought mine, although I was able to score the GSM family discount.

[David 93 SL2m]

Originally posted by kinless
Who says they took it away? I am currently under this guarantee after having just bought my 2005 L300 last month.

And for the record, there was no haggling when I bought mine, although I was able to score the GSM family discount. I thought that for the 2004 model year Saturn changed the "30 day / 1,500 mile money back guarantee" to a "30 day / 1,500 mile vehicle exchange program" instead.

My understanding was that for the 1991 through 2003 Saturn models we had 30 days or 1,500 miles (whichever came first) to return our new Saturn vehicle and either get a refund or exchange it for another new Saturn, and starting with the 2004 model year they dropped the refund part while keeping the exchange part.

I don't work for Saturn so I could be wrong about this...
:fish:

[kinless]

Originally posted by David 93 SL2m
I thought that for the 2004 model year Saturn changed the "30 day / 1,500 mile money back guarantee" to a "30 day / 1,500 mile vehicle exchange program" instead.

My understanding was that for the 1991 through 2003 Saturn models we had 30 days or 1,500 miles (whichever came first) to return our new Saturn vehicle and either get a refund or exchange it for another new Saturn, and starting with the 2004 model year they dropped the refund part while keeping the exchange part.

I don't work for Saturn so I could be wrong about this...
:fish:

Aye, my bad. My eyes only focused on the "30/1,500" part and not the "money back" part. You're probably right. I only saw details in my contract about an exchange. Being a new Saturn owner, I didn't realize that it was a change from previous guarantees.

I'm glad someone's around to put me in my place. :p

[ricksLS1]

Dealers will lose profits on sales of extendede warranties . The mark up on these are very high. If sales don't go up and they are stuck with inventory then things will change and the incentives increase. With Chevy having a close equal to each Saturn I will buy a Chevy. Use my GM earnings and incentives. I'm sure the new L will be basically a Malibu clone. The relay is a pure cone

[eric02SC2]

In a word: YES!

Considering what we paid for a 5 year warrenty for our 2002 SC2, getting the same for only $1,000 seems like a great deal :-)

[David 93 SL2m]

In a word: YES!

Considering what we paid for a 5 year warrenty for our 2002 SC2, getting the same for only $1,000 seems like a great deal :-)I know this is off topic, but you have to ask yourself if you would have paid $1,000 or more in repair bills on your 2002 SC2 after the bumper-to-bumper 3 year / 36,000 mile warranty expired if you didn't have the extended warranty in order to see if it is truly a great deal.

My 1993 SL2 only had the valve cover gasket replacement covered under the bumper-to-bumper 3 year / 36,000 mile warranty period. I too had an extended warranty (6 years / 75,000 miles), but nothing happened to my car other than that one valve cover gasket replacement! I confess that I have carried out routine maintenance on my car (oil changes, new tires, new spark plugs, coolant changes, etc.) but my car has never had anything go wrong with it. So for me the extended warranty was a waste of money. As of November 30, 2004 my car has 151,424 miles and still not one thing has gone wrong with my car. Long live the S-Series! :cool:

[ChgoBlues]

Yes, for the better. Helps offset the Kia, Hyundai extended warranties that really are bogus pieces of....I know we can't swear here but those warranties get people in the showroom just because it says 10 years. Read the FINE print and what those warranties really entail. Funny how DaimlerChrysler doesn't advertise or offer the 7 year powertrain warranties anymore.

[occupant]

From what I understand, you get your choice of the 5/60 warranty OR vouchers towards accessories. That's not cash back IMO, since the money either gets spent or not spent at the retailer only.