Business
The Hummer H2 model weighs 6,400 pounds; the base price is about $52,000.
09:13 AM EDT on Tuesday, June 15, 2004
Larry Bonoff likes his toys big. Really big.
His 2002 banana-yellow Hummer weighs more than 3 tons and stands almost
7 feet tall.
It gets only about 11.5 miles to the gallon, but that doesn't seem to
bother Bonoff, even with gasoline prices near an all-time high.
He's having too much fun to worry.
"It's like a kid's radio-controlled truck, except you're in it now,"
Bonoff said, as he sat behind the wheel of his Hummer, showing off
features such as the six cigarette-lighter sockets.
It is a pain, though, that some gas stations shut off the pump at $50,
even if he's not done filling. He's got to swipe the credit card again,
Bonoff said, to fill up the rest of the 33-gallon tank.
Americans like big things, experts say, and that is one of factors
behind today's high gasoline prices.
Over the past 28 years, drivers have become increasingly fond of light
trucks, which include pickups, minivans and sport-utility vehicles.
Those now account for about half of all light-vehicle sales, up from
about 20 percent in 1976, according to data compiled by the Oak Ridge
National Laboratory.
Cars made up 80 percent of the market in 1976, and now account for the
other half of light-vehicle sales today.
That shift away from cars, which are generally more fuel efficient, has
helped push up gasoline consumption to its highest level ever.
Since 1991, the demand for gasoline has jumped 23.5 percent, to about
8.9 million barrels a day, according to the Energy Information
Administration, part of the U.S. Department of Energy.
Analysts have said that demand is so high for gasoline that refineries
are operating at or near capacity, causing prices to rise.
Bonoff, whose family ran the Warwick Musical Theatre until it closed in
1999, gets a lot of looks as he drives his Hummer around town. His
license plate is "HUMMA."
"I really don't give a crap about what people think about what I drive,
how I dress, what I do," Bonoff said on a recent spin around Warwick in
the Hummer.
"This is America. One size doesn't fit all."
The Hummer certainly isn't for everyone. The H2 model weighs 6,400
pounds, stands 6 3/4 feet high, with roof rack. The base price is about
$52,000.
The boxy-shaped vehicle, and its more expensive predecessor, the H1, are
modeled after the U.S. military's High Mobility Multipurpose Wheeled
Vehicle, or Humvee.
The original H1, which starts at about $106,000, has all the
capabilities of the military version, such as the ability to drive
through water several feet deep. The H2, at half the price, is more of a
luxury car.
The typical buyer of the H2, which was launched in July 2002, is a male
in his mid-40s with an annual household income of about $200,000, said
Keith Donovan, a spokesman for Hummer, a division of General Motors, in
Detroit. The H2 owners tend to have two or three other vehicles and
often don't use the Hummer as their primary one, he said.
GM sells about 30,000 to 35,000 a year, Donovan said. Sales have begun
to level off recently, although it's not clear whether that is related
to recent high gas prices, he said.
The Hummer is so popular that their owners have formed clubs, including
the New England Hummer Owners Group. It has several Rhode Island
members, according to Manny MacMillan, who runs the Web site for the
group (http://www.nehog.org).
Bonoff lives in a modest neighborhood of ranch houses that sit within
the flight path of T.F. Green Airport.
One wall of his living room is lined with pictures showing him, or his
late parents Buster and Barbara Bonoff, posing with famous entertainers
who performed at the Warwick Musical Theatre.
Now that the theater is closed, Bonoff has his own business that lines
up big acts for the Providence Performing Arts Center, he said.
When the weather is nice, he'll leave the Hummer at home and take out
one of his two Harley-Davidson motorcycles.
He bought his Hummer in December 2002 for about $55,000 from the only
dealer in the state.
The Hummer's huge size provides an additional level of security in case
of an accident, he said.
"It protects me against people on a cell phone, people who have driven
less than five years, drunk drivers, people who lost their license,
people who have licenses but no insurance, and illegal aliens," he said.
"If they get in an accident with me and my Hummer, I'm probably gonna
live."
What if the Hummer causes someone else to get hurt who otherwise would
not have been in an accident?
"I don't care," he said. "My goal in life is to protect me."
People do all sorts of things to keep themselves safe, he said, such as
buying alarm systems for their houses.
As for the poor gas mileage, Bonoff said he's not that concerned about
it. Why should he be, he asks, when the government is not serious about
trying to cut energy usage?
He cites as an example that wind or solar power hasn't gone very far
over the past 40 years. There was also a recent article in USA Today
about how the United States isn't doing enough to help oil rigs in Iraq
pump more efficiently, he said.
"I'm not going to drive myself crazy for another 100 gallons a year."
And then there's the tax write-off.
Since he owns his own business, and his company car weighs more than
6,000 pounds, tax laws allow him to deduct 60 percent of the value of
the vehicle.
That $39,000 write-off amounted to a $13,000 discount on his federal
income tax, he said. "From an accountant's point of view, you have to be
crazy not to do it."
There is some balance in the Bonoff household when it comes to gasoline
consumption.
Bonoff's wife, Jean, drives a MINI Cooper, the tiny BMW-made car that
gets 29 to 36 miles per gallon.
She said she's thrilled for her husband that he enjoys his Hummer, and
she encouraged him to buy it.
But it's not a car she would have bought for herself.
"A Hummer does nothing for me," she said, in earshot of her husband.
"No offense, honey," she added.
"There is a frugal side to me," Jean Bonoff said in an interview later.
"I wouldn't get a vehicle that gets only 10 or 12 miles to the gallon."
"That's just the way that I'm brought up. I've always worked for my
money before I met Larry. I'm just not a wasteful person."
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