The Hummer EV: Can You Profit From Reselling a Car?

News

By RC Staff

06 March 2023

Key Points:

• Hummer EVs are another entrant in the emerging market for all-electrics, boasting serious power and plenty of features

• Edition 1 models would retail for around $110,000, and pre-orders could be resold for much more, sometimes exceeding $200,000

• The Hummer EV’s attractive blend of power and efficiency, as well as classic name recognition, make it a one-of-a-kind vehicle

Item

Cars, Motorcycles & Vehicles

117.4K

Profit

This is the difference between the sale price and resell price. It does not take into account any costs associated with reselling. Things like shipping, storage fees, if applicable.

2022 GMC Hummer EV Edition 1 Truck

The legendary Hummer was revived in 2020 when GMC announced the badge's new 9,000 pound, 1,000 HP electric vehicle. The Edition 1 was available for preorder with a $100 refundable deposit, and was limited to 10,000 orders total.

The Hummer has risen from the dead, in the form of the new all-electric Hummer EV from GMC. Discontinued in 2009, the Hummer was known for being one of the least fuel efficient vehicles ever made, so the shift to electric is rather poignant. First announced in late 2020, GMC planned to produce several different versions of the new Hummer, with the first being the Edition 1. Allocations quickly sold out, and those who managed to get one could resell them for upwards of $200,000.

All About the Hummer EV

The classic Hummer was a familiar sight on freeways and suburbs back in the day, and there are plenty of models still on the road. Originally adapted from the HMMWV “Humvee” military vehicle, the Hummer was a brilliant expression of American excess and obsession with power and brutality. Yes, you do need a V8 powered, wallcrawling behemoth of a vehicle to go grocery shopping, and yes, we will sell one to you.

The new Hummers are a clear riff on this image, trading in the gas-guzzling ICE for three silent electric motors, actually boosting horsepower in the process. While it’s fun to rag on electrics as nothing more than battery powered kids’ cars, the reality is that electric locomotion can produce scary amounts of power.

Edition 1 Hummer EVs push 1,000+ horsepower to four wheels, with up to 11,500 ft-lb of torque. GMC claims a 3.3 second 0-60 on a 9,000 pound vehicle. Without delving too deep into the well of features, the Hummer EV is a clear milestone for electric vehicles.

As for pricing and trims, GMC has big plans for the Hummer EV. Both a pickup and SUV are planned, but initial orders were only available for pickups. The Edition 1, which was the first Hummer EV to be released, had its first deliveries take place in fall of 2021. Edition 1s retailed for around $110,000 and were generally loaded with all available features.

Future trims and packages will become available, but Edition 1s are clearly a test bed for the Hummer EV and its future success. As of now, GMC anticipates its lowest price offered for a Hummer EV will be $84,000, but this will not happen until 2024.

Why Did Edition 1 Hummer EVs resell?

After opening for pre-orders in 2020, Edition 1s began to resell before they had even been delivered. Despite an MSRP of $110,000, reservations for Edition 1s could change hands for upwards of $200,000, with buyers unable to receive their cars until Fall of 2021.

The driving factor behind the Hummer EVs resale value is its unique position in the market. Similar offerings from Ford and Rivian are beginning to creep into the all-electric pickup market, but they lack the brash attitude of the Hummer. The Hummer EV has taken the best parts of its predecessor, trading in the V8 for electric motors, but retaining the over-the-top, aggressive styling and massive frame.

It’s an electric for people who hate electrics. If they’d be ashamed to be seen driving a Prius, then they’ll be proud to be behind the wheel of a Hummer, even if it’s an EV. And while the argument about looks is subjective, the power isn’t. The Hummer EV boasts seriously respectable specs for a vehicle, EV or not, and it would be desirable no matter what.

Underpinning this existing demand was scarcity. Just 1,200 Edition 1s would be produced, and the waiting list would stretch into the thousands. Customers began calling dealerships on the day of the announcement to jockey for an allocation. However, because Hummer EVs were sold through GMC dealerships, the way these allocations would go differed from other high profile car releases.

You could have bought a Hummer EV at retail

Normally when we see a new car resell for significantly over retail, it’s produced by a luxury or sports manufacturer, like Ferrari or Mercedes Benz. In these cases, the manufacturer will generally produce a special run of a particular model, with amped-up specs. Limited numbers are made, and the allocations are typically snatched up quickly.

For high-end cars sold through high-end dealerships, these allocations go to their best customers—people who have bought several cars through the dealership and spent tens, even hundreds, of thousands of dollars. Their names are generally at the top of the shortlist when a new car comes out, and while it might not be a completely official practice, they’re definitely getting the first few phone calls.

However, the Hummer EV was produced by GMC. While GMC likely anticipated a degree of popularity, they likely had no way of knowing the new Hummer would become so hyped, nor would they be ready to handle the surge of calls. The “power customer” model of handling allocations didn’t exactly apply here, as GMC dealerships tended to handle significantly higher numbers of customers than a luxury dealer, while collectors or enthusiasts buying multiple vehicles were rare.

In fact, many of GMC’s biggest customers were business owners, purchasing fleets of work vehicles. The number of enthusiast buyers that typically make up the short list for a luxury dealership was quite small. In the end, this meant allocations were more of a free for all than most other hyped car releases. If you had the capital, it was actually entirely possible that by calling up your local GMC, you could get on the list for a Hummer EV.

As of the time of this writing, the price for Edition 1 Hummer EVs is holding at around $150,000. While the earliest sales regularly exceeded $200,000, the market has cooled slightly with more trucks in circulation. Still, with a $110,000 buy-in and a fully refundable deposit, this represents massive reselling profit with practically no risk.

While cars are often thought of as a poor investment and almost guaranteed to lose value, this isn’t always the case. Many times, limited releases of heavily hyped up cars can be a great opportunity for profit. Sure, no one is going to fight you for your Camry pre-order, but we have seen this happen time and time again, like with the Cybertruck, Rivian, and now the Hummer EV

Electrics seem to be the new battleground for these types of aftermarket sales. With their significantly higher price compared to an ICE vehicle, it means that prospective buyers will typically be wealthy, a plus for sellers. Additionally, the forward thinking nature of electrics make them attractive to buyers, and justifies a higher upfront cost.

What do you think? Would you buy a car to resell? If you’re not sure where to get started reselling, we’ve got your back. Check out our other articles and find the best items to buy and sell.