Resale Value

[Acidus]

Hi all,

I've been lurking for a while and haven't purchased an H2 yet. I want to get the SUT this summer.

I read a message on another H2 forum (albeit posted by an H2 salesman) that a great reason to buy the H2 was the high resale value.

I am under the impression that the H2 is overpriced and the current high resale value is due to it being so new. You can purchase a new '03 H2 for less than what most people are asking for a used (13k miles) H2 with comporable options. Nobody is paying $70k for an H2 today and I think the "high resale" value is quickly coming to an end.

I don't think a good reason to buy an H2 is because its an investment. I want to purchase the SUT because I want one, and I think I'll take a bath if I try to get rid of it soon... like most other vehicles. I also think the H2 dilluted the resale value of the H1, and the H3T will be detrimental to the H2's resale value.

I'm wondering how many H2 owners think that the "high resale" value is a great reason to buy one. If you do, I think you are nuts. If you bought it because you just love it, I'm with you.

[Acidus]

Hi all,

I've been lurking for a while and haven't purchased an H2 yet. I want to get the SUT this summer.

I read a message on another H2 forum (albeit posted by an H2 salesman) that a great reason to buy the H2 was the high resale value.

I am under the impression that the H2 is overpriced and the current high resale value is due to it being so new. You can purchase a new '03 H2 for less than what most people are asking for a used (13k miles) H2 with comporable options. Nobody is paying $70k for an H2 today and I think the "high resale" value is quickly coming to an end.

I don't think a good reason to buy an H2 is because its an investment. I want to purchase the SUT because I want one, and I think I'll take a bath if I try to get rid of it soon... like most other vehicles. I also think the H2 dilluted the resale value of the H1, and the H3T will be detrimental to the H2's resale value.

I'm wondering how many H2 owners think that the "high resale" value is a great reason to buy one. If you do, I think you are nuts. If you bought it because you just love it, I'm with you.

[argonaut]

I would not buy a car ever based on resale value. Cars are not investments, cars are money pits. Especially offroad vehicles like the Hummer. Hummers get damaged on the trails and cost money to fix.

Aside from that, I really don't think the H2 has a very good resale value. You lose a lot. BMW has much better resale value IMO. Just buy one, you will love it. You will not regret you decision.

[noc]

I would have to agree. Not many people buy cars because of the resale values. Even accords and camrys don't have good resale values anymore. The only good resale value I've seen is the Lexus RX300.

[MAC]

Argo, I don't think BMW gets good resale value either. Used BMWs and MBs are expensive, only because they started out expensive. You can buy a 2 yrs old MB S500 for $45K-$50K, which was $80K-$85K when new out of the door, thereafter the drop is $5K-$8K per year, much higher than American autos, but more likely similar % in relation to the the prices.

American automobiles tend to suffer the highest % drop in value in the first year, except hot new models such as Hummer in the first 6-9 months, which is not longer the case and hasn't been. The supply and demand set the prices. The moment you drive out of the lot, you stand to lose $5K-$10K. Even if you sell it at the same buying price, you will lose thousands in related buying expenses.

The good news is that you are not the only victim, happens to every one and every car.

[FrgMstr]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by argonaut:
I would not buy a car ever based on resale value. Cars are not investments, cars are money pits. Especially offroad vehicles like the Hummer. Hummers get damaged on the trails and cost money to fix.

Aside from that, I really don't think the H2 has a very good resale value. You lose a lot. BMW has much better resale value IMO. Just buy one, you will love it. You will not regret you decision.<HR></BLOCKQUOTE>

Ditto my brother.

If you are worried about cost and resale value, I would suggest you not buy one or that you find a used one that has been through the wringer already. Might wait till the SUT hits though, I have a feeling that more than a few H2s will be up for sale then...

________________________
Black 2003 H2 - Just like most of yours, just possibly with less crap bolted on.

My job: http://www.HardOCP.com

[Acidus]

I actually wrote I think "you are nuts" if you think the H2 will keep a good resale value. I'm glad to see you guys agree.

[Detonate]

The H2 "did" have a high resale value. This was because there was no blue book or black book value listed for a vehicle that new.

You could take a used H2 and get MSRP for it.

That changed about 4-5 months ago.

------------------------------
2003 Red H2 equipped with Tough Country Heavy Duty Armor Series Front End with Winch, Rear Bumper, Brush Guard, and Roof Rack.

[argonaut]

mac, the reason i used BMW as an example isbecause they were just rated as highest resale value in the luxury market. mercedes was way down there. Then again, the BMW I just sold was an M3, so generally has a higher value retention.

[Fellow Off-Roader]

"I am under the impression that the H2 is overpriced"

personally don't agree with you on that one. if you compare what the H2 offers vs the competition, its priced fairly well. like any other new vehicle, the "newness" factor will wear off, yet, the brand is pretty solid.

GM is doing much better with expanding the Hummer brand vs Ford with Land Rover. Where Ford is almost giving up on the LR off-road capability, GM with Hummer just exploits it. Hell, even the ads reflect it.

Nope, imho, the Hummer offers good value for the buck.

[FrgMstr]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Fellow Off-Roader:
"I am under the impression that the H2 is overpriced"<HR></BLOCKQUOTE>

It is only overpriced if it costs more than you are willing to pay.

________________________
Black 2003 H2 - Just like most of yours, just possibly with less crap bolted on.

My job: http://www.HardOCP.com

[MAC]

The best value is if Hummer does not change the style often. H1 stayed the same for 10 years, you can drive a 1995 H1 and still look and feel fresh. Hope the same is true with H2. This is an old trick used by the European car makers. MB styles last up to 10-12 years, the last SL came out in 1990, replaced only in 2003. I bought a new 91 SL, sold in 2002, that SL looked new and fresh for 11 years. To me, once a new style of the same model came out, I feel the internal pressure to change, and the value of that car drops overnight. May not be market value, but the value in my mind, which is the only thing that counts, for me.

[argonaut]

Yeah Mac, I agree. You will notice the Japanese brands changing body styles rapidly, while the germans last for about 8 or 9 years. the SL has got to be Mercedes longest run body style. My mom bought a used 91 SL500 for cheap, and with a little body paint (the two tone style only lasted a few years, so she made it all black) it looked like the new ones. that lasted her until the new body style came out. Well, when it wasn't in the shop that is. Boy those Mercs have problems...

[KenP]

When I sold cars years back, one of my lines was, "How much would you like to invest each month?"
Whatever...
A new vehicle is rarely an investment.
Buy a 2 yr old vehicle every year and you will not lose nearly as much as you would on a new vehicle every few years. But, you must buy right.

Black Lingenfelter Lux

[MAC]

Argo, I never had any problem with the SL. No even a leak on the garage floor, automatic top works perfectly, everything.

1-2 years used auto is great deal. The Jaguar I have now bought 8 months used with 8K miles, $20K less than new. Hummer was new and I had to wait in line, otherwise I rather but it used. Now I see some used H2 sold for same price as new, not a good deal yet, but that is asking price, if you bargain well, you may get a far better deal on used H2.

[HHummer]

Another consideration that has always been a us mfgr. problem (especially GM) is sticking a glut of the outgoing model in the dealerships at model-year end to get every one out the door that is possible. You head down to your GM dealer to trade up to the new model and find that GM has just dumped a pile of new last year models at a discount. Add on big rebates and they have just sucked your resale value out of your vehicle. This deteriorates the used value and additionally discourages buyers of the new model due to the excessive depreciation. It is rumored that Hummer is only building half as many 04's as 03 models. That will help. We'll see. If they do a big rebate mid-year they will ruin the market - GM is not capable of managing product historically.

[Drag]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Add on big rebates and they have just sucked your resale value out of your vehicle. This deteriorates the used value and additionally discourages buyers of the new model due to the excessive depreciation. <HR></BLOCKQUOTE>

I've said it before, and I'll say it again, There weren't any real big rebates on the '03s. There was a $1K at the end of production, but that is pretty standard to offer a little something to clear out the stocks of last year's model. Comparatively speaking, on a 50K vehicle, a 1K rebate is just to give you an excuse, not a real value add.

Now on a cheap Chevrolet, like, say, a Cavalier, a 4K rebate is almost 1/5th of the cost, and that SHREDS the resale value. HUMMER didn't do that. There is a coupon offer that other people have discussed on the board, but again, it's for a grand, and I think it was only mailed out to select people, not the general public. This doesn't hurt the resale value.

What would really hurt was if GM had done a radical change after the 03 model. The owners of the 03s would have been up sh*t creek, with money sunk into a vehicle that had to be redesigned after the first model year. Sure, adding options makes sense, and doesn't make the 03 depreciate, but if say....a diesel was offered for 04 and not 03, then all of the 03 people would be looking at massive depreciation. Hummer didn't change the H2 after one year, and I think that it proves that they're looking out for the resale value for current Hummer owners. Hummer doesn't do discounts like the rest of the GM empire, or Ford, or Chry....I mean Benz and that also helps to preserve resale value.

Arguably, the worst time to buy is if there's a redesign coming. Then you got suckered, because your vehicle isn't even passable as the "New model". And from what we have been given to understand, Hummer isn't making many 04s so that H2 and SUT production will be in synch. This also helps the resale value on 04 models. Will there be a redesign in 05? That's the question, and I hope the answer is "NO"

Yes, this is my truck. No, I will NOT help you move.

[MAC]

Few months ago I read a story about BMW in Businessweek, one thing it reported was interesting. It said BMW always intentionally managed the inventory to be just a little bit NOT ENOUGH, they bring in less cars than they estimated what they can sell, to create the anticipation, a waiting list and higher value both in new and used cars. It said BMW have always done that for many years.

[HUMMERDOGG]

All I can say is SMART BUY, SMART BUY, SMART BUY...

-HUMMERDOGG

TROLL POACHER (I hunt trolls even if it ain't troll hunting season...)

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