Price increase?

[Steve 2]

A friend went to a dealer and they told him there will be a $7000 price increase shortly and that they will be producing only diesels for a few months. Has any one heard the same rumors?

[MAC]

HeeHaw, I think you are right. My wife says I look like the hat guy, not the punk, maybe the punk is my evil twin brother. I wore a suit and tie every single working day of my life since 20+ after the Army. No hat.

I read in BizWeek, BMW intentionally build less cars than what they estimated the demand is, and it is a common tactic used by premium auto brands to create demand and prestige of the brand. They want people to wait, they control the pipeline to create some waiting.

[H2Norcal]

I am glad to see some of you agree on what is going on with this vehicle. All the post-delivery folks hate to hear it I know, but the H2 is a marketing-hype feast right now. The reality is that it is a hot new vehicle and they are playing all the new launch games.

This was fine about 18 months ago when we all were paying MSRP + 10% mark-up to give the dealer some extra spending money for the deal. But the economy does not work that way anymore.

My dealer has $5k markup in mine. I told him that I have no plans on giving his dealership extra money for absolutely nothing. He said we will work it out.

[Peyton77]

I was at Coral Hummer in South Florida this weekend (Had to get the wife’s formal approval for purchase) They were actually very helpful. The salesman mentioned that a $4K price hike was rumored. I have no idea is this was an effort to make me purchase that day or if there was some truth to it. He seemed like a decent person, but then again he is a car salesman. He also told me that he just delivered #367, and they were the largest volume dealer on the East Coast. Last but not least they had about 25 on the lot, all were sold and waiting for delivery.

Peyton

WWW.LANDMARKBANKONLINE.COM

WWW.GIANTBANK.COM

[kelleymac2000]

For certain things. They get awesome gas mileage, so all in all they are more cost efficient than gas engines. They also offer a greater towing capacity than most gas engines.

Having grown up in the midwest, I can tell you that trying to pump diesel in the winter is like trying to pump snot...not a lot of fun!

Kelley

[HeeHaw]

I'm so used to seeing you as the Thomas Crown Affair guy, that is seems odd not to see that icon.

HeeeeeeeeeeeeeeeHawwwwwwwwwwwwwww

[Peyton77]

I heard all the same answers when I was at the dealer the other day...

The best was when I asked how long it would take if I were to order one exactly the way I wanted it and he told me that it could take even longer bc the factory will make the general production vehicles first, and group the ordered vehicles together at the end...

Makes sense, the ones that are pre-sold you build last..

Peyton

WWW.LANDMARKBANKONLINE.COM

WWW.GIANTBANK.COM

[H2Norcal]

I spoke with our dealer in Norcal and they said "you better hurry up because there is gonna be a price increase very soon". That was three weeks ago. To be frankly honest, I didn't believe him. I really think it is GM trying to hit their widely publicized 35,000 production target for the 2003 model. It is the old trick of "make them feel like they gotta have one before the price changes frenzy". Our dealer has well over 12 H2's on their lots and 1.5 times that in H1's. Although they say they sell through about seven a week, there is a good selection right off the lot.

I asked about a diesel. The sales manager of the dealership said that it was going to be very unlikely they offer a diesel for the H2 soon because it would cause a conflict with the H1. He said the diesel is a determining factor for many that buy an H1. A diesel in the H2 would make it hard for anyone to pay an extra 60k for an H1.

[MAC]

Reading between the lines here and elsewhere, there seems to be some respect and desire for diesel Hummer. Why is that? Clearly I am not familiar with diesels, they seem to be dirty, smelly and slow, and diesel fuel is no longer cheaper. One does not want to be behind a diesel Mercedes with a blacken butt or a school bus, just about the only time I turn on recirculation is when I am behind a diesel. Maybe there is some diesel magic that I do not know.

About car salesmen/women. I agree it is a pain to deal with a junior salesman who tries to pretend to be someone he's not, unfortunately one does not know who to ask for when walk into a showroom. I have been lucky in the last few auto purchases. I personally know a few car salesmen who make $200-$300K a year in commission. No.1 factor is not being smart, but having the right brand, Lexus, MB have buyers waiting in line.

[NSXTC]

I had a salesman say that the Escalade engine makes more HP than the H2. This is true....but wait...

So I asked them how come?

His response?.....

"Because the Escalade weighs less than the H2"

I bought my H2 from another dealer.

[HeeHaw]

Pumping "Snot" as Kelly put it is NOT my idea of fun or to steal a line from a movie "Not my idea of a bitch'n time." Whatever, the diesel does have some advantages and it has its shortcomings as well. I too came from the Midwest (Missouri)and I know what cold weather is all about. I do agree with Kelly.

The H2 is WAY TOO popular for the price to remain as low as it is. When I first saw the H2, my first thought was I couldn’t afford that. Then when I found out they were 50-ish, I said I take one and I'll take that white one right there. Here's your check and off I went. I actually laughed thinking I had just bought a vehicle that is probably worth more than I just paid for it!

The price is going up, get used to it!!! For anyone who is thinking of buying an H2, my advice is to buy now and laugh later! If you don't, you may be sorry, unless you are rich. If you're rich, then who cares, buy what you want, when you want and you certainly don't need any advice from me. But for normal folks like me, better get while the gett'n good!! (old Missouri saying)

Mac also brought up a good point when he mentioned the type of car and the fact "Lexus, MB have buyers waiting in line." Good point. All forum members, seek out a MB dealer and price the S500 and see what they say. Be prepared to spend 80,000.00+. That vehicle is perfect example of STATUS and LUXURY all wrapped up into one vehicle. The Hummer will never be an S500, but it popularity will directly affect the price. ITS GOING UP...................soon

HeeeeeeeeeeeeeeeeeHawwwwwwwwwwwwwww [img]/infopop/emoticons/icon_cool.gif[/img]

[Zing]

With deisel engines I think the appeal is better fuel economy and a simpler engine since for one thing deisels don't require spark plugs for combustion, just pressure. Not compelling reasons for me.

It's a good point about car manufacturers creating artificial demand. It is much like the clubs here in the city that hire doormen to stand behind velvets rope while there are only 30 people inside, yet people are more than willing to wait and pay the high cover because you see the line and think you're missing out on something. The do better at the end of the night than if they would have an open door policy.

Well, I've committed myself to wait for the 2004 and if the price goes up so be it. My bet is that while the H2 can command $60K, I bet they'll keep the price about where it is and charge for a nice premium for the higher horsepower engine and other luxury options.

[DIANE]

humcopter...sounds good to me.It would make my trip to Miami much quicker than driving. My husband could put it in the hanger next to his twin engine Hummer 310.

[cognitive]

$48,800 base when it came out
$49,190 base current price

That's a $390 increase. I believe there were increases in the package prices as well but I'm too lazy to track down the exact numbers. I don't think the increase exceeds $1000 and I don't know which particular options were increased but just do your homework before going to the dealer. It's such a pain to add numbers in front of a dealer... and if you ask them to do it, they hem and haw as if they've never used a calculator.

So which dealers are actually talking about the price increase from GM?

I only care about this because if the price does go up to 60k, the H2 SUT will most certainly cost $50k as opposed to the $40k originally planned.

[Steve R]

If I had to have a brain transplant.....I'd insist on getting a brain from a salesman....cause I'd want a brain that wasn't used!!

[TonkaH2]

In large part, BECAUSE it's a good value at around 50K! They need to at least wait until they have an H3 before they make the H2 cost 60K or more. I know some will spend more, but if they had given the H1 an H2-cushy interior would they be able to sell 45,000 at $110K? I think not. . . they at least need to keep the base model at the price point. And they better not come out with the diesel until I've had mine for a year!!! [img]/infopop/emoticons/icon_biggrin.gif[/img]

-Jack
Yellow H2 adv. on order
"I think I can make it. D'OH!"

[H2Norcal]

That is not even worth their trouble for a $50K+ vehicle.

If it is a real increase, I think it is a test buoy that can be easily removed when you sit down to do the deal.

Stupid.

[SOFTTAILJC]

h2's just went up a $1,ooo. next year they estimate 3 more. they created a feeding frenzy. now if you want one ...anti-up......soft

[HeeHaw]

cognitive, really enjoyed your thread and it is very true and insightful of dealers. You brought a lot of good points to light and the members of this forum can benefit from your prospective.

I still think the price will rise........but that is not based on scientific data, just the fact I think they will rise. 2004 will sell for about 60 and then the nicer model about 75. Just a GUESS!

See ya...............

HeeeeeeeeeeeHawwwwwwwwwwwwwwwwwwww [img]/infopop/emoticons/icon_cool.gif[/img]

[HeeHaw]

The icon is YOU!

HeeeeeeeeeHawwwwwwwwwwwwwww