I don't think the price of the H2 will go up. I do think however that the 2004 model will have two base models. One will be much like the current H2 and the second will be the one we keep hearing about with the higher quality interior and higher HP engine. The lower end model will appeal to the current market. If it didn't exist, Hummer would basically alienate a huge market. Remember that the Escalade is really the only competition for Hummer and it's priced slightly higher than the H2. They do know that they can push the cost up and many people will still buy them. The higher end model will fulfill this purpose. It will compete slightly more with the Mercedes - the ones who want the glitz and will pay almost anything for it.
The current market availability of H2's is pretty much fabricated. GM had high goals for selling the truck and I think we're starting to see the desperation to meet the goal. There's pretty good evidence of this. The dealers are alotted a certain number of trucks to put on their lot as well as to custom order. Well, if you haven't noticed, many of those on the lot are sitting there for awhile. They are NOT flying off the lot. The dealers will lie about this to get you to place an order. They will lie about the ones on the lot that are 'sold'. Why? Because unless you indicate that you want to drive one off the lot that day, they'll push you to order one or to take one in next months batch. They know there's enough impatience around that the ones on the lot will either act as advertising or someone will come in and demand an H2 at any price.
Ask your dealers some questions:
Q: Is their going to be a price increase?
Dealer: Yes probably in the next month or 2.
Reason: Get you to buy now.
Q: When does the H2 2004 come out?
Dealer: Late next year.
Reason: Far enough out so that you feel comfortable getting the 2003 now.
Q: When can I get one with a sunroof.
Dealer: Oh, it could take almost twice as long.
Reason: They want you to take one without a sunroof b/c they know the ones with a sunroof will sell easily. Also, if they want to push the non sunroof model they'll use the line "ah, most people don't use the sunroof anyway." That may be true but I think most people are in awe of cars with sunroofs.
Q: I want a basic model but I don't want to place an order. Do you have one?
Dealer: No. You won't find a basic one on the lot. You have to buy one with the options.
Reason: Yes, it's true however, there ARE basic H2's on the lots occassionally. These usually appear when someone has cancelled their order. You have to be vigilant to find these but they are there.
Q: I want Yellow. Can I get it in Yellow (the color that doesn't appear to be on the lot).
Dealer: Why? Don't you like red? There's a red one coming in that I think you'd like.
Reason: Some colors sell better than others so they'll push they'll push any color that they have coming in.
Q: How is the demand?
Dealer: Oh it's huge. All of the H2's are sold.
Reason: Get you to place order.
Q: Why have those been sitting here on the lot for weeks?
Dealer: Oh those are being picked up today.
Reason: Create perception of demand.
Q: (one week later)... why are those H2's still here?
Dealer: Oh, those aren't the same ones. Those are going out today.
Reason:... same same
Q: (one month from the last time you asked about the sun roofs) Why do all of the H2's on the lot have sunroofs when you told me they wouldn't be made until early next year?
Dealer: Oh those were ordered several months ago.
Reason: Coverup.
I could go on and on about dealer talk but you get the idea. If the price goes up, then I don't think I understand economics as I don't believe the demand is that high.
|