Two H2s under 40 Grand..Why?

[Tom S]

Hey everyone, i am newbie but i was just doing some online shopping when i came by two Yellow H2s for under 40,000. Why are they selling for some much less then what i have seen in the paper and in other classifieds? Here are their links. http://www.cars.com/search/used/cc/standard/results/single/ld/detail.jhtml?paId=133282116&aff=national&src=&cid=null

http://www.cars.com/search/used/cc/standard/results/single/ld/detail.jhtml?paId=134162866&aff=national&src=&cid=null

[Tom S]

Hey everyone, i am newbie but i was just doing some online shopping when i came by two Yellow H2s for under 40,000. Why are they selling for some much less then what i have seen in the paper and in other classifieds? Here are their links. http://www.cars.com/search/used/cc/standard/results/single/ld/detail.jhtml?paId=133282116&aff=national&src=&cid=null

http://www.cars.com/search/used/cc/standard/results/single/ld/detail.jhtml?paId=134162866&aff=national&src=&cid=null

[WORKING_CLASS_HERO]

And they have average mileage..I wonder if they have salvaged titles or something???

[argonaut]

They could have been abused offroad pretty badly.

[Andy C]

Around here, it seems the guys in the Yellow Hummers are the ones that glare at me or completely pretend to ignore me instead of being friendly and waving. they also are the ones that I never see muddy, even though yellow looks nice under a layer of mud.


Does that ring a bell Argo

Maybe its because they are yellow.

[Hummertime]

alful cheap...see if he will answer an email question. will post.

Bone stock but dreamin!

[WORKING_CLASS_HERO]

I sent him/her an email..I'll post whatever info they say back. thanks for the idea!

[Tom S]

Andy C you must be right about the yellow thing. Heres another one yellow one for 38.
http://www.autotrader.com/findacar/vdetail.jtmpl?car_id=146004780&dealer_id=&car_year=2003&make=AMGEN&distance=any&max_price=40000&model=H2&advcd_on=n&end_year=2004&min_price=1232&certified=n&address=98822&search_type=used&advanced=n&start_year=1992&color=&cardist=973
But heres a Red one for 40.
http://www.autotrader.com/findacar/vdetail.jtmpl?car_id=146744444&dealer_id=6221726&car_year=2003&make=AMGEN&distance=any&max_price=40000&model=H2&advcd_on=n&end_year=2004&min_price=1232&certified=n&address=98822&search_type=used&advanced=n&start_year=1992&color=&cardist=2311

[argonaut]

Andy is just trying to piss on me about an earlier post I made Tom, nothing about you. I simply said that in Portland It seems that the yellow ones tend to never be taken offroad and have rude drivers that don't wave to other Hummers. He has his panties in a bunch for some reason. Beats me. Good luck on your search though. I hope you find a good one for a great price and can join the (mostly) happy Hummer family.

[VI66]

I e-mailed the 1st link and no reply came.

As to why they are priced cheaper. No one in their right mind would pay $50K for a used vehicle.

Check out the prices at Kelly Blue Book, I typed in a Range Rover and it came in at just over $40K for a two year old model, that's a $35K+ hit!

I put in a 99' H1. A model came in at $45K, the seller claiming it was pristine!

I was going to buy a new H2, I think I might wait and get an 03' model (which I like better) around May/June of next year. I'd pay $30-35K no problem. http://www.elcova.com/infopop/emoticons/icon_biggrin.gif

[Frank Hewitt]

phild,
I'll be greatly disappointed if in one year from now there are H2's available at under $30,k. you may be right, I just hope not. That would indicate painful market over-saturation. That would mean a $20,k depreciation in two years of production. Pretty sad. That's worse than even Saab.

gasman

[HUMMERDOGG]

That makes my Smart Buy purchase all the more sweeter... I pray that the depreciation on H2's isn't over $20K in 2 years but that'll be good for me... I can "put" my H2 to GM and then buy the exact same one back for even less money than their inflated residual..

[Drag]

Phil,

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>That's all they are worth in today's market. The heavy discounting of 2003's as pretty much killed used values of the H2. <HR></BLOCKQUOTE>

What heavy discounting are you talking about? There was that $1000 offer cash back, and now this $1000 coupon, but compared to that you can get the $5000 rebate on a Silverado or other GM car or truck. The H2 is not heavily discounted. In fact, I think that except for the new for '04 models, it is the least subject to factory incentives than any other GM vehicle.

Consider, Porsche and Mercedes don't offer rebates, and their resale value is sky high, Hummer has only offered 2 rebates of at the max $1K. The residual looks pretty strong from where I sit.

The question remains is how much these vehicles will deprieciate in five years, not in one. Figure that in five years, the H2 may be ready for a reskin or other upgrades. GM doesn't change vehicles that often, partially in order to offset the drop in resale value that their incentives cause. If the model changed radically from year to year, then each individual year wouldn't be worth squat because the "big improvements" were in the next model year. The longer that a product keeps true to the original, the greater the short term residual value. Once signifigant changes are made, the resale drops.

Having said all that, I am excluding classic and collectable vehicles from this equation, as they follow different rules for depreciation and residual value.

Nobody expects the Spanish Inquisition!!

[Hummertime]

emailed owner...still no responce! figures!

Bone stock but dreamin!

[john m]

I would be interested to see the sticker of the '$9000 off" 2003...There just isnt that much profit in an H2, not even with the $3K factory to dealer cash. I would guess that the $9K discount is on a highly modded H2 with a ton of aftermarket options that carried a huge mark up...If the market were so overstocked with '03 H2's, the incentives would have gone up this month, but they went down instead...JMO... http://www.elcova.com/infopop/emoticons/icon_smile.gif

[NCHummerman]

Mercedes still holds value ..... we just sold our 2000 E320 Wagon 4-Matic (purchased in October of 1999), 32,000 miles, Desert Sand in color with matching all leather interior, integrated cell phone, CD, etc. the works, in really perfect condition .... we were asking $39,900.00 and got $41,000.00 to a private party. There was bidding on it. New, we paid $55,000.00 .... go figure ? We just ordered a new 2004 E500 Wagon ....

Michael
---
Pewter Hummer H2
Northern California

www.zootsuitstore.com (http://www.zootsuitstore.com)
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[john m]

I agree, Phil...with GM supplier and f-t-d $$$ I got well over $7K off sticker on mine

[Drag]

PhilD,

I'm not calling you a liar, just that the automotive market is a bit more complicated that you theorized.

For example, those advertised incentives are all local dealer incentives, not GM. The auto market looks at those price discounts last. Plus, since GM and other manufacturers pay fees to the dealers just for selling the vehicles (holdback and floor charges just to name a few), then the dealer can sell at below MSRP and still make a profit. Even if you get "Invoice Price" this is not dealer cost. Dealer cost is several points (often 3 to 4% below) less than the "Invoice cost".

How would you like this? You buy a used car, spend hundreds on your extended warranty, then when you need to file a claim, the warranty company finds out your used car was salvaged, and voids the warranty.

Let's say a thief buys an H2 at a junked salvage auction for $5,000. He launders the title back to a legit "Rebuilt" status, then steals the exact same model H2. He files down the VIN on the stolen truck, transfers the VIN plate from the rebuilt junked car, and sells you the stolen H2 as a used car. The only way to uncover this scam is to check the VINs on all panels of the car to make sure they match.

Just remember, a lot of those ads have the fine print like "You must purchase at least $X in accessories to qualify for this special rate" or "Used vehicles come AS IS". This means that either

a) You have to buy accessories, which often carry a 100% mark up and bring the vehicle back to original price,

or

b)The vehicle is used, and has no warranty due to title status. Even GM Extended warranty plans do not cover rebuit title cars.

If you can find a $20K H2 in 12 months that is not junked, rebuilt, or otherwise a scam, then my hat's off to you. I just would not purchase cars with suspiciously large discounts unles I have all the paperwork and a CarFax report. I hope that you're a careful shopper.

Nobody expects the Spanish Inquisition!!