Where is the alarm module located?
The alarm module is located on the driver's side underneath the carpet between the seat and the door sill.
My dealer says this service is not possible.
As far as a dealer is concerned, it is not possible for THEM to do. Saab does not give their dealers this ability, they would rather sell more new parts.
Why does the dealer charge so much?
Dealers don't have any programming options available to them other than to replace parts. They are passing along the expense of those new parts to you.
Does my Saab 900 have a transponder (chip) in the key?
No. None of the Saab 900 models are equipped with a transponder (chip) key.