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Are orphan cars better deals?

Most folks don't know a Saturn Aura from an Oldsmobile Aurora. Those of you who are immersed in the labyrinth of automobilia know that both cars were testaments to the mediocrity that was pre-bankruptcy General Motors, and that both brands are now long gone. But everybody else? Not so much. By the same token, there are some excellent cars and trucks that don't raise an eyebrow simply because they were sold under brands that are no longer being marketed. Orphan brands no longer get any marketing love, and because of that they can be alarmingly cheap. Case in point, take a look at how a 2010 Saturn Outlook compares with its siblings, the GMC Acadia and Buick Enclave. According to the Manheim Market Report, the Saturn will sell at a wholesale auto auction for around $3,500 less than the comparably equipped Buick or GMC. Part of the reason for this price gap is that most large independent dealerships, such as Carmax, make it a point to avoid buying cars with orphaned badges. Right now if you go to Carmax's site, you'll find that there are more models from Toyota's Scion sub-brand than Mercury, Saab, Pontiac, Hummer, and Saturn combined. This despite the fact that these brands collectively sold in the millions over the last ten years while Scion has rarely been able to realize a six-figure annual sales figure for most of its history. That is the brutal truth of today's car market. When the chips are down, used-car shoppers are nearly as conservative as their new-car-buying counterparts. Unfamiliarity breeds contempt. Contempt leads to fear. Fear leads to anger, and pretty soon you wind up with an older, beat-up Mazda MX-5 in your driveway instead of looking up a newer Pontiac Solstice or Saturn Sky. There are tons of other reasons why orphan cars have trouble selling in today's market. Worries about the cost of repair and the availability of parts hang over the industry's lost toys like a cloud of dust over Pigpen. Yet any common diagnostic repair database, such as Alldata, will have a complete framework for your car's repair and maintenance, and everyone from junkyards to auto parts stores to eBay and Amazon stock tens of thousands of parts. This makes some orphan cars mindblowingly awesome deals if you're willing to shop in the bargain bins of the used-car market. Consider a Suzuki Kizashi with a manual transmission. No, really.

A case for Pontiac's return

Sadly, many brands have disappeared off of the automotive landscape over the decades. Many people have imagined over the years of restarting defunct automotive brands. A few of those dreamers even made prototypes to shop around and to established connections with investors. But, alas poor Yorick, however valiant an effort, many brands are shuttered for good, rarely to be heard of again except in historical tales or maybe seen in car shows. So, what do you do when you win the lottery? Not just any lottery... In fact, it is a lottery that takes care of you and your loved ones for life? You and your family don't have to work, ever. You can give to charity, pay other people to do those projects that you've been putting off, and so on and so on. But, you're still a Car Nut right? There begins the conundrum. Do you buy and fix cars, new premium cars, old muscle cars, or classics, or maybe, just maybe, do you buy the rights to an old departed automotive brand and bring it back to life. Hmm. Which brand? The problem with the old Pontiac was that it was an additional badge engineered vehicle in the portfolio of GM. The meant the brand was diluted by competition from its own parent company, in addition to the competition outside the camp. So, if it were to come back, it would have to be different. Yet, it would still need to keep true to its roots at the same time in order to wake up its armies of existing fans. Even those that aren't fans of Pontiac cannot deny that Pontiac has a long heritage of legendary vehicles. So do Packard, and Studebaker, and others. So, why would a lottery winner choose Pontiac as the marque to bring back? That's easy! Pontiac's long heritage is closely tied to performance vehicles that made many of a teenager drool. Even more important though is that Pontiac is still fresh on people's minds. The brand itself is only recently departed. So, Boomers, Generation X, and Millenials all would all be able to identify with it as opposed to brand names that disappeared multiple decades ago and that now have a more limited appeal. The return of Pontiac couldn't just be another launch of a badge engineered vehicle. It would have to be performance oriented, yes. But, it would have to be unique in some way, a niche brand. What niche though? Look at the automotive landscape now and you see that Tesla is the one out there grabbing at the wide open electric niche with success.

GM doing fine at retaining Pontiac owners

This isn't the first time we've reported positive news about General Motors retaining former Pontiac owners. Get a few more stories like this latest report from Edmund's Auto Observer, and it will mark an ongoing positive trend for GM. Edmunds.com crunched the numbers to see how well the General is hanging on to customers after shutting out the lights at Pontiac, and it found that nearly 40 percent of Pontiac owners stayed with a vehicle from a General Motors brand.
The numbers are a little lower than an earlier R.L. Polk & Company study, but Edmunds says General Motors is keeping more former Pontiac buyers than it has since 2007. Most are turning to vehicles from Chevrolet, especially during January and February of 2011, when GM incentivized Pontiac owners to stay under the umbrella. Those moves seem to have worked, and 28.1 percent of Pontiac owners trading up made the jump into a Bowtie.
Buyers that have gone elsewhere have largely stayed loyal to Domestic automakers, with Ford picking up the most conquests from Pontiac, with 9.4 percent switching. Toyota and Honda picked up 7.4 percent of the pool of former Pontiac drivers. The numbers are defying any predictions that Pontiac buyers would completely exit the General Motors fold, and have climbed up closer to parity with the retention figures of other GM brands from a 2009 low of only 16 percent retention.