The Hummer EV is not going to be a good deal anytime soon
If you are looking to buy a Hummer EV, you will most likely be paying above MSRP for at least the remainder of the year. As EV production is ramping up and EV prices are dropping, the Hummer seems to stand out as one of the few EVs that is unable to scale production or see dealer markups go away. Lets find out why the Hummer EV is not getting any cheaper.
Background on the Hummer EV
The Hummer EV was announced almost 3 years ago, in October of 2020. At the launch, a lot of hype built up for the “super truck” that can challenge Tesla and Rivian. The top of the range model would have 1000 horsepower, have supercar level acceleration and some of the practicality of a pick up truck. The truck also had 4 wheel steering, which led to some captivating commercials featuring its unique “crabwalk” feature. However, the pandemic and issues at the GM production plant have led to very few of these cars being produced, and dealers in some cases charging over 50% premium to get your hands on one of these cars.
What is the current state of the market for Hummer EVs
Since launch, GMC has only managed to sell 900 Hummer EVs in the United States as of the end of June 2023. This number is abysmally low and there is no sign of an increase in sales, in the first half of 2023 GMC sold only 49 trucks - a significant decrease from the first year. With such low inventory, pricing remains high. Dealers are marking up new orders by about 45% and used vehicles which can be purchased right away are in some cases 70% more expensive than their original MSRP.
Average prices for Hummer EVs have flattened out at just over 175K, close to 60% markup
What is the outlook for the Hummer EV market?
It is hard to image that GMC is going to go from selling 16 Hummers a month on average to 100s or even 1000s of them any time soon. Given the tight supply, dealers will have no reason to discount new inventory and the used market will remain at or above MSRP since that is the only way for customers to not wait months for delivery of a new car. My prediction is it will take at least another 8-12 months for the market to have enough supply where you are able to buy a Hummer EV for under MSRP
What are some alternatives for a Hummer EV?
One of the big appeals about this car is its styling and branding. If you are looking for similar performance, the Chevrolet Silverado EV is actually using the same exact platform and will be very similar from a performance & capability standpoint. GMC will also roll out a Denali EV which would feature some of the luxury touches in the Hummer and will be a close competitor. It will be interesting to see how those two trucks scale production given the issues with the Hummer. The Ram REV might also offer similar capabilities, but it will not be on the market for a significant amount of time as is not a realistic alternatives for someone looking for a vehicle now. The amount of large luxury electric pickups is very limited on the market, but at the current $150,000 price point for a Hummer EV, any other electric car is going to be cheaper, including performance options from Porsche.