Why You Shouldn’t Buy a Hummer

“What do you need that thing for”, I ask myself every time I see another Hummer driving through the neighborhood. Out here in suburbia I just don’t understand why in the world people would own such a money pit just to drive around town.

I searched online and found that Jim Walczak over at about.com wrote an article “Should You Buy A Hummer?” that covers the pros and cons of owning a Hummer. He sums it up

“the Hummer is a symbol more than anything. It’s all about image and attitude. It’s purchased more for looks and brawn than practicality and purpose. So, if you’re looking for another way to get noticed…the Hummer could be just what you’ve been waiting for.”

Below are some of the negatives that he lists about owning a Hummer:

• Insurance is higher than most vehicles.
• Gas mileage is poor (roughly 12mpg), especially when used as a daily driver.
• Maintenance costs are high.
• Resale value isn’t very high.
• Expensive to buy, and even more to keep.

In my opinion, owning a Hummer is obviously not a wise move financially. I guess I’ll never understand why people choose to buy one, the only thing I can say is don’t do it!

One thing to note, his article covers the H1 and H2 models, not the newer, smaller H3 that costs less and has better gas mileage. It doesn’t matter to me, H1 or H5, you’re not being smart with your money if you buy a Hummer! I guess if you have no debt, an emergency fund, and fully funded retirement accounts then you can spend your “play money” on a Hummer; but people who have 30K of play money laying around probably aren’t reading this article.

In summary, Just say no to Hummers!

Ben Edwards, the founder of Money Smart Life, saved up enough to buy a Nintendo back when he was 12 years old. When he used the money to buy shares of Wal-Mart stock instead, he knew he wasn't like the other kids... His addiction to personal finance has paid off for his family and now he's helping you to afford the life that you want. Check him out on the web at Google Plus, Twitter and Facebook.

All posts by Ben Edwards