Late 03vs early 04 H2 value.

[MAC]

There are many factors influence the value of a used car, such as the mileage, condition, one of the most basic would be the production year, that goes on the registration and VIN permanently. 3-5 years from now when someone buying a used 03 H2, whether it is early 03 or late 03 will not make much difference, likewise with the bluebook or trade in value. The issues can be complicated, such as missing 1 year of enjoyment, less interest paid on lower cost, etc.. we are only talking about the big resale value.

Does that mean if someone buys 03 H2 within the last 2 months to Aug 03 at $2K-$4K less than early 03 H2 models, the money saved is instantly lost? Plus the full first year depreciation, assuming that is $5K, making the total $7K-$10K.

On the other hand, if one buys early 04 H2 at full MSRP, $2K-$4K higher cost, comparing with buying a late 03 model, that money is not really a lost? being 04 will worth more than 03 by the thousands $ permanently. In addition, being the 2nd year model, that may not bring extra value but at least extra desirability.

[MAC]

There are many factors influence the value of a used car, such as the mileage, condition, one of the most basic would be the production year, that goes on the registration and VIN permanently. 3-5 years from now when someone buying a used 03 H2, whether it is early 03 or late 03 will not make much difference, likewise with the bluebook or trade in value. The issues can be complicated, such as missing 1 year of enjoyment, less interest paid on lower cost, etc.. we are only talking about the big resale value.

Does that mean if someone buys 03 H2 within the last 2 months to Aug 03 at $2K-$4K less than early 03 H2 models, the money saved is instantly lost? Plus the full first year depreciation, assuming that is $5K, making the total $7K-$10K.

On the other hand, if one buys early 04 H2 at full MSRP, $2K-$4K higher cost, comparing with buying a late 03 model, that money is not really a lost? being 04 will worth more than 03 by the thousands $ permanently. In addition, being the 2nd year model, that may not bring extra value but at least extra desirability.

[HUMMERDOGG]

Now, MAC, don't go and make my decision even more difficult than it is.

*member of the "No Hummer Krew"*

[DCfromCapeCod]

That is exactly why I would rather get a 2004 for $1000 off MSRP v.s. a 2003 for $4000 off MSRP.

[MAC]

Z, Hummerdogg, DC, Dan and all your no-Hummer guys are part of the Hummer family, you have been here as long we we have. I see many of you are on the verge of buying a 03 Hummer, I don't know the answer to the questions, but you waited a year, you need to know the answer.

I am looking at 1-2 years used MB S500, 01, 02 or 03.
4 key points: Color, year, mileage & price.
The difference is about $10K a year. There is no mention of early 02 or late 02 and I don't care. 01 is never more than 02, regardless of mile & condition, if 01 is higher $, whatever the reason, it is eliminated instantly.
01 is tempting because I save $10K, but that was the first model year, if I have a choice, I'll go for 02, and I do have many choices.

If you turn the table around, that is how your potential used Hummer buyers will look at your Hummer 2-3-5 years later.

The extra money you pay for 04 will always be in your Hummer.

[Dan]

I'll be "stuck" with an '05 model

- Dan

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SUT on order since 12/02 - 10 months to go!
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[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.

[HUMMERDOGG]

I'm basically saving $6,500 by going with the 2003 (with the GMS Supplier Coupon and $2,000 rebate) and I am also doing the Smart Buy so just in case this one has life long issues I can turn it in after 3 years while everything is still under warranty and never worry about having to get extended coverage.

*member of the "No Hummer Krew"*

[Raj]

I am getting heartburn from dealers out here to do Smart Buy. What kind of rate did you get? What is your monthly payment? How much did you put down? What dealer?

I am ready to move on one but just need to know these final details to see which method of financing I will do.

-Raj

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by HUMMERDOGG:
I'm basically saving $6,500 by going with the 2003 (with the GMS Supplier Coupon and $2,000 rebate) and I am also doing the Smart Buy so just in case this one has life long issues I can turn it in after 3 years while everything is still under warranty and never worry about having to get extended coverage.

*member of the "No Hummer Krew"*<HR></BLOCKQUOTE>

[Spidey]

If comparing with us that bought the early 03 H2 VS people currently buying the late 03 H2. The Later H2's purchases would greater benefit. If they wait to buy the new 04 H2 they will recieve the same loss, have to spend about $7,000 more to purchase and would only benefit by driving the newest addition the H2 puts out.The breakdown goes like this...

Early purchase of 03 H2 was approx $50,000
Late purchase of 03 h2 was approx $45,000
Early purchase of 04 H2 was approx $52,000
(slight cost increase)

START OF 2005
03 early purchase worth after 2 yrs.depreciation approx $40,000
03 late purchase worth after 2 yrs depreciation approx $40,000
04 early purchase worth after 1 yr depreciation approx $47,000

After 2 yrs. we lose $10,000 while the late 03 buyer loses only $5,000.The same amount he would have lost had he bought the 04. But even though the depreciation loss facter may be the same as the 04 purchase, With the late 03 purchase he still benefits with all the tax write offs associated with the 2003 year. Lets not also forget that
typically a late year purchase would have fewer milage on it given normal driving conditions so when it comes to resale it should command higher dollars. Not as much as an 04 but the difference may not be that different. Other conditions may then apply such as color, interior exterior condition. Original VS The not yet proven -- new and improved Model ?? My choice ------- I'd go with the Late 03.

[HUMMERDOGG]

RAJ-

The Smart Buy I locked in which the dealer has agreed to and will hold for me until the end of the month when I am ready to buy is as follows: 15K miles a year, 48 months @ 6.5%. The Residual Value will be roughly $22K. They have also said that if GM introduces any additional rebates on the H2 between now and the end of the month they will give me those as well. It seems GM is updating their rebates every two weeks with the last revision being 8/4/03. I am also currently talking with one of my credit unions who does the Auto Advantage Balloon to see if I can get a better rate. They will do roughly the same Residual Value and I am working on trying to get 48 months at 5.25-5.75% with the same amount of miles and same turn-in provisions. At 5.25%, I would be saving $2,160 over the 4 years. So it's definitely worth pursuing. We will see...

I guess my question to the forum is this: Did anyone do a Smart Buy on their H2 during last Summer&Fall and if so, what were they using as the Residual Value back then on a 48 month/15,000 mile Smart Buy???

*member of the "No Hummer Krew"*