CLUNKER MATH (may have been posted before, if so, sorry)

[TomT]

CLUNKER MATH

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons
of gas a year.

A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons
of gas a year.

So, the average Cash for Clunkers transaction will reduce gasoline
consumption by 320 gallons per year.

The government claims 700,000 clunkers have been replaced so that's
224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil.

5 million barrels is about 5 hours worth of US consumption.

More importantly, 5 million barrels of oil at $70 per barrel costs
about $350 million dollars.

So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 for every $1.00 we saved.

I'm pretty sure they will do a better job with our health care, though.

[custom1]

http://www.pittsburghlive.com/x/pittsburghtrib/news/westmoreland/s_639664.html

I remember reading this article when CFC started. At the end is a guy who turned in a 1990 Corvette. I looked up the trade in value of a 1990 Corvette. It was worth at least $6000 on it's own! Average retail is about $9000 or $10000. So The Gov gave the dealership $4500 of our tax dollars to entice this guy to trade his vett  and get less than he would have before CFC or if he sold it on his own.  This dealer had all their CFC cars in a lot behind their building, so I went looking for the vett after I read the story and guess what. It wasn't there.  So where did it go??
It's the same for every car that was turned in. They all had some trade in value on their own that was lost to get "up to" $4500 of our $     None of this stuff ever passes the common sense test but it passes congress..   Rant over.

[Marcel]

Well what was going on at the time of this legislation?

Major Recession.

What was the goal?

Get the economy moving.

Did this help?

Yes.

Does this make sense  as a good business move?

No.

Is Congress in business?

No. Unless you look at Governemnt Motors, and too big to fail mentality.

Will I buy a car from Government Motors?

No.

I hate Fords, don't know why, but that is the way us Humans are put together, But I would buy a

    Ford 1st, due to the fact they took no bail out funds from you and I.

Should we as Americans buy American made goods as opposed to Foriegn Made Goods?

Yes. Good luck finding any though, but if you look closely they are usually the higher priced items

     and of good quality, such as knives, boots , socks, watches, belts, condoms, razor blades.

AL

[G-Man]

Let's not forget that it screwed the used car market for the used car dealers and buyers.  It also screwed the folks who were looking for new cars and didn't have a clunker to trade in as there were no deals to be had (the new cars were going at list price).  Aaaaalso, I seem to recall that the foreign automakers did better than the domestic ones.

[HayHauler]

"Aaaaalso, I seem to recall that the foreign automakers did better than the domestic ones."

So the $350 million dollars wasn't really spent in the US.....

Hay 
Jimmyt

[olddog1946]

The real winners of the "clunkers" fiasco was the wrecking yards..they got some very nice rigs for practically nothing, and although they were required to run the engine with a solution that would ruin the motor and cooling sytem, they made far more money than any other beneficiary of this program..in fact may have actually been the only beneficiary.

[¿spoom]

Let's not forget that it screwed the used car market for the used car dealers and buyers.  It also screwed the folks who were looking for new cars and didn't have a clunker to trade in as there were no deals to be had (the new cars were going at list price).  Aaaaalso, I seem to recall that the foreign automakers did better than the domestic ones.

amen! We could've stimulated the economy quicker throwing the money out of airplanes at random.

[G-Man]

"Aaaaalso, I seem to recall that the foreign automakers did better than the domestic ones."

So the $350 million dollars wasn't really spent in the US.....

Hay  
Jimmyt

I was.....but the foreign automakers didn't receive billions in bailout that still haven't paid back in full.