The Hummer EV has Completely Crashed in Price

News

By RC Staff

28 November 2023

In the world of car flipping, the Hummer EV Pickup was the standout darling of 2022, spelling profits of as much as $120,000 (or more) for savvy resellers that paid attention. But flash forward to now, and sellers are watching their once-golden tickets struggle to fetch more than MSRP at auction.

Early Resellers Made LOTS of Money

First off, credit where credit is due. The Hummer EV was an insanely profitable flip for early resellers. 

Preorders went live on October 20th, 2020 following the car’s unveiling via livestream at 5 PM PST, and you had about 10 minutes to place a refundable $100 deposit before the Edition 1 was sold out. Considering the meager deposit cost, this was a pretty accessible opportunity, too (you didn’t need 6 figures in the bank).

If you were quick on the jump and got one of the early delivery dates, congratulations! You made as much as $160,000 in profit depending on when you sold. The car’s MSRP was $112,595, and the first Bring A Trailer sale was for a mind-boggling $275,000.

Initial Hype and Supply Shortage

So, why were the early EV Hummers reselling for so much over their MSRP in the first place? Surely they were super limited or something… right? 

Well, no actually. The Hummer EV resold for so much early on because it checked the following boxes:

Rare, cool, and flashy.

When entering the $200k+ automobile range, there’s a small subset of buyers that care less about “value” and more about what position their car buys them in the valet hierarchy – and for a short window in time, these EV hummers were trumping even Aventadors. Having one early was the ultimate status symbol. By buying a Hummer EV for $275k, they were telling the world “I know it’s depreciating 6 figures in the next year, and I don’t care”.

And by buying a Hummer EV early, they knew they’d have many months until production ramped up beyond a crawl. The Hummer EV was truly the ultimate aftermarket flex.

Steady Decline and Factors

Since the Hummer EV’s explosive entry into the automotive aftermarket in 2022, its market price has consistently been in a downtrend. Shown below is a chart of every auction close price, sourced from both Bring a Trailer and Cars and Bids.

In just a year and a half, the car’s average aftermarket sale has declined from the mid $200,000s all the way down to around its $112,595 MSRP – heck, the last 5 Bring a Trailer auctions haven’t even hit reserve price. So what’s the deal? 

We can point to a shifting car market, or poor reviews for the Hummer. Or maybe even anticipation for the upcoming Tesla Cybertruck. But at the end of the day, the #1 driving force behind this downward price trend is simple: GM fixed production.

Production numbers:

• 2021 (Oct-Dec): 140
• 2022 (Jan-Dec): 4,890
• 2023 (Jan-Jul): 11,058

(Data sourced from GM Authority)

Supply has finally met demand – simple as. The Hummer EV isn’t outshining an Aventador at valet anymore. And who would pay $275k for that?