Dealer offering $44,999 - check this out

[Zing]

I just saw an add for a dealership in NJ offering the following:

- $44,999 on 2003 H2s
- Includes lux package with sunroof
- That's $8,466 discount off MSRP of $53,465
- Or you can choose 0% financing for 48 months

I read the fine print and it includes a $1,500 "Hummer loyalty rebate" for existing Hummer owners, so the discount is actually $6,944. Otherwise it seems legit and is quite a deal that has me thinking.

For those in the NY area the add is on page 59 of today's Daily News.

[Zing]

I just saw an add for a dealership in NJ offering the following:

- $44,999 on 2003 H2s
- Includes lux package with sunroof
- That's $8,466 discount off MSRP of $53,465
- Or you can choose 0% financing for 48 months

I read the fine print and it includes a $1,500 "Hummer loyalty rebate" for existing Hummer owners, so the discount is actually $6,944. Otherwise it seems legit and is quite a deal that has me thinking.

For those in the NY area the add is on page 59 of today's Daily News.

[Zing]

So this got me thinking about the whole question of how much off MSRP is enough incentive to buy the 2003 vs. the 2004. I went back and did some math on another vehicle I own. After 3 years the book value declined 40% and after 8 years 75%. Using this as a proxy you could expect the H2 to depreciate on average:

- over 3 years - depreciation of $7,129 per year
- over 8 years - depreciation of $5,012 per year

So if I sold it in 3 years I might as well just get a 2004 because in the end I will be no better or worse off. And if I keep it longer getting the 2003 would save me maybe $2,000.

Since I don't want the lux package anyway, I'm still leaning towards getting the 2004 even with this deal. Sweet deal though if someone want's to save $7,000 up front.

[Raj]

Which dealer in NJ is this?

Thanks,

Raj

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Zazing:
I just saw an add for a dealership in NJ offering the following:

- $44,999 on 2003 H2s
- Includes lux package with sunroof
- That's $8,466 discount off MSRP of $53,465
- Or you can choose 0% financing for 48 months

I read the fine print and it includes a $1,500 "Hummer loyalty rebate" for existing Hummer owners, so the discount is actually $6,944. Otherwise it seems legit and is quite a deal that has me thinking.

For those in the NY area the add is on page 59 of today's Daily News.<HR></BLOCKQUOTE>

[Zing]

Paramus NJ on Route 17.

[MAC]

This is an excellent example of logic vs. irrational exuberance.
On one hand, we have people who are not too smart, such as I, who bought the Hummer immediately upon love at first sight. One the other hand, there are those who are far more calculated and smart enough not to let their emotion drive their actions. I see no solution for Z and Raj who are in search of the best value and lowest prices.

1- If you wait 3 months, 03 H2 prices will be even lower than today.
2- The nation’s economy is unlikely to recover within 12 months, thus 04 H2 shall be as cheap as 03 H2 today, maybe 0% 5 yrs plus $4K off MSRP will be available, why not? $10K off + 0% is now available on all other GM big SUVs.
3- But again, if you wait 1 more year, there will be many 03 and o4 used H2s at maybe $35K-$40K.
4- Finally, why not just keep your current autos? Keep the money and invest wisely, that $45K-$50K final cost will mean $80K 5 years later, or $100K in 9 years, or $200K in 18 years.
5- In another 6 months, you passion for Hummer will more than likely subside or be no more. Imagine how much money can be saved.

[Hummer Man]

Mac, Good points! You have convinced me to sell mine. Buy a used 1973 ford pickup and invest the balance in PORK BELLY FUTURES. I wanna be rich like you some day!

[Zing]

Those who know me on this forum know that ever since I've joined I had planned to wait for the 2004. No, it's not been easy. But in an unusual moment of irrational exuberance (and MAC you may want to sit down for this) I went to this dealer after work today to buy the 2003 at this discounted price.

So I walk in the dealer and asked about the offer. Funny because the dealer did the exact thing that SONA said on another thread where he went in the back to talk with the manager, took 15 minutes, came back with a pencil behind his ear acting like he had to do all sorts of research to find out the status. He says that they had one H2 at $44,999 and someone JUST put a deposit on it an hour ago. Boy do I have bad timing. I know this one sales guy pretty well now so I started teasing him and he admitted that it's just to get customers in the door. Lots of competition from other dealers putting up similar adds he says. He did offer me what he offered in the past, $2K off of MSRP for the 2003.

So back to the original plan, 2004 baby - bring it on! But now, if I wait for the 2008 H4...

[MAC]

Sounds like SOP (Standard Operating Procedure) to me. It is a sales technic that has been refined in the last 100 years and proven to work well. They got you sit there for 15 minutes thinking something was going to happen, didn't they? Exactly as the books said they would do. It is very unfortunated, but many times in the past some auto industry big shots tried to change the system but failed. Saturn is a good example, but Saturn has NEVER MADE A PENNY OF PROFIT for GM.

Things sometimes work a little differently at luxury brands at some locations, but often because there is no bargaining on MB and Lexus. I know people who work at Mercedes and Lexus dealers, they basically sell every auto they can get plus 6-9 months waiting lists on some models all the time. Hummer waiting list was a big shock to the industry, but that has been the standard at some luxury brands for years.

Makes me wonder, while the economy is in very bad shape without the light at the end of the tunnel, yet there are all these brand new $60K-$90K automobiles everywhere.

[Z06_to_H2]

GoldCoast in NJ paid invoice with no problems.

03 H2 Black W/Lux Pck
Tint, V1, Chrome rims, chrome rear letters, and sma fuel door on the way!

01 BMW 325i w/sport package
30% tint

*SOLD* 7/14/03
02 Z06 TR
Plate- Z06 4 SPD