Late 03vs early 04 H2 value.

[Zing]

I have researched this question extensively, hired a crack team of scientists, consultants and mathemeticians and came up with the following.

Answer partly depends on how long you plan to keep the vehicle. If in the 3-year range, you can expect to lose about $7K per year on the H2 on averate. So if you saving $4K by buying a late year 2003 H2, you're at least $3K in the hole in comparison right up front. If you plan to keep the H2 for 8 years, however, depreciation averages out to be more like $5K per year. That's because the annual amount of depreciation is more in the early life of a new vehicle than later on.

Now on the flip side, saving $4K or some other amount up front by buying a 2003 allows you to theoretically invest those savings and get some return, and you could have an additional $2K or so in additional earnings over 8 years. Not a big deal. But still a consideration.

So, I think the most frugal way to go about this is to buy a used 2003 H2 that has a lot of miles and save $10K and invest your savings. Let someone else bear the the initial depreciation. Otherwise, trying to save a few grand on buying a 2003 that right away drops in value as soon as the 2004 comes is a poor choice. If you are one of those on the fence right now, do what Alec says, go for the 2004.