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For Hummer Salesmen, Life in The Slow Lane

By CATHERINE BILKEY, Special to the Sun | June 6, 2008

Salesmen at the Hummer of Manhattan dealership on Eleventh Avenue sat idly in their showroom on a recent weekday, waiting for customers.

"I haven't sold an H3 in a long time," one of the salesmen, Leonard Boltz, said. "I sold an H2 two or three months ago. There is some noticeable downtime."

General Motors announced this week it is considering selling or revamping the Hummer, a model based on the military Humvee that can handle bumps, clear obstacles, and even ford 24 inches of water. What it can't do is combat rising gas prices. With gas now topping $4 a gallon and the economy weakening, there is a dwindling base of customers willing to shell out $64,000 to buy one of these gas guzzlers.

"When the economy is down, people try to put off big financial decisions," Mr. Boltz said. "We call previous customers during the day, peruse the showroom. We try to generate business by hitting the phones, answering the phones, and responding to e-mails."

The Hummer H2, the largest of the models, gets just 10 miles a gallon, according to popular car reviewer Edmunds.com. The H3, Hummer's midsize version, gets more typical gas mileage for SUVs, around 14 miles a gallon, according to the Environmental Protection Agency.

"This year we're definitely feeling a pinch in H2 sales, even though it has an improved, more luxurious interior," Mr. Boltz said. "Gas prices have certainly eroded consumer demand, especially for those who are on the fence about buying a Hummer."

For those who bought a Hummer before the run-up in gas prices, getting rid of it now can be a challenge.

"In years past, if a Hummer was bought for $50,000, somewhere after a year the car would be worth something like $40,000 or $42,000," the purchasing manager at the Manhattan-based Car Cash, which buys used cars, Philip Rosato, said. "Now, if they paid $50,000 — after a year they'd be lucky to get $30,000. There are no takers for vehicles like that, so the prices are going lower and lower. Some dealers are not even taking sport utility vehicles as trade-ins."

Mr. Rosato said Hummer owners are overwhelmed by the news of the depreciation. "People go into shock when they find out how much they're worth. ... They shop around and then they realize what we were saying was not wrong," Mr. Rosato said. "A lot of people are buried in these cars financially."

The poor mileage and lack of trade-in value are not put-offs for Poupette Bangoura, one of the few customers who has ventured into the Hummer of Manhattan dealership recently.

"I like Hummers — everybody says that I'm crazy, but I don't care," Ms. Bangoura said. "It's my dream car. I've been saving every penny for the H3."

For Ms. Bangoura, the Hummer is more than just a financial investment — it's a way of life.

"I think they're cool. They're big and comfortable, and they have enough space. I've been thinking about buying one for a long time," she said.

It may be that the draw of the Hummer lifestyle will trump its financial disadvantages, Mr. Boltz said.

"This summer the '09 Escalade hybrid will come out," he said. "It will be an alternative to the Hummer in the same bracket of large cars. But look at them side by side. They're urban SUVs. The H2 is an off-road, luxury, tactical machine."


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