What is the depreciation rate for Hummers?
The range of depreciation for most Hummers are about 15.60% in the first year.
In this Hummer depreciation guide, we provide an in-depth explanation of how this vehicle depreciates using examples of different models of the truck.
Depreciation Values for Hummer H1, H2 and H3
|Hummer Model/Year||New Price||Value Lost Year 1||Value Lost Year 3||Value Lost Year 5|
|H3 SUV 2008||$12,000||$1,872||$4,785||$6,860|
How Depreciation Affects Hummers
Hummers depreciate like most other cars. But they can hold their value for longer because any Hummer you plan to buy or sell now will be pre-owned.
In the first year of ownership, you can expect a 10-year-old Hummer to depreciate by up to 15.6% or more. The residual value also depreciates by the same percentage in subsequent years.
By the end of the fifth year, a 10-year-old Hummer should have depreciated by 57.17%, leaving you with 42.83% resale value.
This isn’t bad at all considering that most new cars lose about 30 percent of their value in the first year.
Explanation of Hummer Depreciation Values
Depreciating Hummers require using a lower percentage point and average depreciation value because they hold their value for longer. For this article, we depreciated the vehicle at 15.60% per year.
H1 2004 Depreciation
At 15.60%, a 2004 H1 sold at $21,000 will lose $3,276.00 in the first year. Depreciating the vehicle with the same percentage increases its depreciation to $8,374.56 and $12,006.44 in the third year and fifth year, respectively.
At the end of year five, the Hummer will lose about 57% of its sales value.
H2 2006 Depreciation
Using the 15.60% depreciation value, a 2006 H2 sold at $15,000 will lose $2,340 in the first year. It will depreciate by $5,981.83 in the third year and $8,576.03 in the fifth year. The vehicle will have a value of over $6,000 at the end of year five.
H3 SUV 2008
Depreciating a 2008 H3 SUV with a sales price of $12,000 at 15.60% results in a depreciation of $1,872 in the first year. In the third year, the truck loses $4,785.46 and $6,860.82 at the end of the fifth year.
These values will vary based on the model year, location and market forces. But Hummers belong to a premier list of vehicles that can hold their value for long periods. If depreciation is a big deal for you, a Hummer is a good buy.
Note that the depreciating value used here is constant because every Hummer model is already 10 years old.
If you are depreciating a new vehicle, the depreciation percentage in the earlier years will be higher than in the later years.
Which Hummer Has the Highest Depreciation?
Based on statistics, the H2 is the Hummer with the highest resale value. The vehicle keeps its value for longer and continues to command a high price depending on the trim. Some model years of the H3 and H1 have serious problems which dented buyer confidence in them, making them depreciate faster.
The H2 has been adjudged one of the best SUVs for off-roaders. It comes with a sturdy exterior, reinforced undercarriage, and a plush interior. Plus, H2s didn’t have serious factory defects, so most users have a great experience with them. The same cannot be said of the early model H1s and H3s.
Vehicles like the 2006 H3 and some models of the H1s with the tendency to suffer a cracked engine block depreciated faster than the 2006 H1 Alpha and the venerable H2s.
Which Hummer Has the Lowest Depreciation?
The H3 2006 model is arguably one of the least valuable of all Hummers. This vehicle is plagued with myriad manufacturer defects. From blowing head gaskets, leaky valves, cracking cylinders to electrical issues, the 2006 H3 was a source of constant headaches for users and dealers.
The H3 2006 model year commands less resale value, especially if the vehicle has low mileage. This is because most of the problems don’t manifest when the truck is still relatively new.
Early model H1s also have a low resale value. Some trucks have serious heating and cooling issues, an underpowered engine and extremely low fuel economy. Then there is the problematic block 8 cylinder in H1s produced from 1996 to 2000.
If you are unlucky to buy an H1 with this engine block problem, the vehicle can suffer a cracked motor suddenly. AMG replaced most of the vehicle under warranty, but it is safe to check before buying the truck.
Because of the fear of purchasing a maintenance-intensive vehicle, many people shy away from the problematic models, increasing their depreciation while reducing resale value.
Comparison of Gas and Diesel Hummer Depreciation
The only Hummer model we can compare regarding gas and diesel fuel is the H1 because the H2 and H3 use petrol. Only the 1995 and 1996 H1s used gas. These vehicles are extremely rare and have now become a collector’s item because AMG produced only a handful.
Gas H1s command a high resale value because they use the reliable Chevy 350 small block engine. The motor is one of the most reliable gas engines ever produced and is easy to maintain.
It also seems the gas-powered H1s escaped the scourge of defective engine blocks. They retain their value for long periods and low-mileage models command tens of thousands of dollars if used properly.
How Do Hummers Depreciate Compared to Other Vehicles?
At the 2014 edition of the Canadian International Autoshow, the H2 won the best resale value award out of 19 top-rated vehicles. The event organizers found that the H2 retained 71.14% of its original sales price after four years. This was better than 50% to 65% value retention of the 18 other award winners in the best-retained value category.
10 years after GM stopped producing the H2, the vehicle commands a good price on the market.
Despite its hulking size and gas-guzzling reputation, you can find H2s selling for over $50,000 thanks to their exceptional durability, off-road capabilities, and luxurious interior.
The same applies to the H1 Alpha and the H3T Alpha. These vehicles and many other late model Hummers continue to attract a huge demand in the export markets including Europe, Asia, the Middle East, and Africa.
How to Increase the Resale Value of Your Hummer
A lot of factors contribute to Hummer’s high resale value including scarcity, rugged build, and macho effect. However, you can do more to increase the value of the vehicle if you plan to sell it in the future. Here are things you can do to get more sales dollars from buyers.
Hummers are maintenance-hungry beasts. If you want to sell yours for a high price, maintain it religiously. Despite their many problems, Hummers with hard miles can behave like new with enough care. And there are thousands of diehard fans looking to splurge premium dollars on Hummers in optimal condition.
Even if you take care of your Hummer like a baby, nobody will believe you if there is no record to prove it. Keep detailed service logs of your vehicle to show prospective buyers they are getting a great deal.
Besides showing you are a conscious user, the maintenance records also let the buyers know the main issues the truck had in the past. This will guide their maintenance practices and can help reduce running expenses.
Keep It Clean
This is obvious but it will shock you to know the number of people that leave their vehicle unwashed before showing it to buyers. Just like you stage a home prior to letting prospective buyers see it, you can get better deals if the truck is squeaky clean when people see it for the first time.
You don’t have to detail a Hummer to make a good impression, but make sure it looks and smells nice before you show it to buyers.
It is vital to have every necessary paperwork related to your Hummer. This adds credibility to your ownership and gives buyers the confidence to do business with you. Get the title, liens, existing insurance and warranty documents, receipts and any other record that can aid the sales process.
Use Professional Photos
Smartphone photography has come a long way, but they stand no chance in the face of professional photos. When you want to sell a Hummer or any other vehicle, ensure you list it with premium photos.
A professional photographer might charge you a premium but he/she will capture the best qualities of your truck, allowing you to get better asking rates.
Conclusion on Depreciation of Hummers
Based on data, Hummers have one of the slowest depreciation in their class. Despite the cessation of production since 2010, the vehicles are still sold for great prices and demand is strong.
H2 is the best Hummer in terms of value retention. A lot of factors contribute to this including its low incidence of factory defects, comfortable interior, and excellent off-roading abilities.
The H1 and H3 depreciate faster than the H2 except for the 2006 H1 Alpha and the 2008 and 2009 H3 Alpha. If you are considering buying Hummers, go for the late model H1, H2, and H3s. They feature matured technologies and have fewer cases of manufacturer defects.
If you are planning to buy or sell a Hummer, you can get good deals regardless of the model or year. For people who want to sell, it helps to have an up-to-date maintenance record and great exterior. This can help you command higher rates.