Cash for Klunkers Math

[FloridaPoke]

A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of

gasoline.

A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.

So, the average clunker transaction will reduce US gasoline consumption by

320 gallons per year.

They claim 700,000 vehicles - so that's 224 million gallons /year.

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

5 million barrels of oil is about ¼ of one day's US consumption.

And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.

So, we all contributed to spending $3 billion to save $350 million, in order to accelerate foreign manufactured car sales that would have occured anyway in the future, thus reducing future sales.

[wood911]

A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of

gasoline.

A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.

So, the average clunker transaction will reduce US gasoline consumption by

320 gallons per year.

They claim 700,000 vehicles - so that's 224 million gallons /year.

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

5 million barrels of oil is about ¼ of one day's US consumption.

And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.

So, we all contributed to spending $3 billion to save $350 million, in order to accelerate foreign manufactured car sales that would have occured anyway in the future, thus reducing future sales.

That's 'cause we are so damn smart!:stupe:
The Cash for Clunkers was for the benefit of the unions, not the taxpayer. How can you buy votes if you aren't giving something away. You are absolutely right, tho, it wasn't very well thought out. or was it?:huh::furious3::confused:

[jakeman]

Maybe the economy will be stimulated in 9 months or so when all those low mileage used cars are for sale really cheap because they were repossessed from people that have absolutely zero chance of paying for them.

This was nothing more than a replica of the fiasco that started the housing bust, only with automobiles.

[ARPoke]

I wonder if we might even see an increase in fuel consumption because people will drive these more efficient vehicles more than they would their "clunker" since they are getting better gas mileage? I know people in central Arkansas have that mentality, they think that filling up a 13 gallon tank twice is cheaper than filling up a 26 gallon tank once.

[Lewis the Pike]

Maybe the economy will be stimulated in 9 months or so when all those low mileage used cars are for sale really cheap because they were repossessed from people that have absolutely zero chance of paying for them.



+1:officechair:

[Vulgar Display of Orange]

Maybe the economy will be stimulated in 9 months or so when all those low mileage used cars are for sale really cheap because they were repossessed from people that have absolutely zero chance of paying for them.

This was nothing more than a replica of the fiasco that started the housing bust, only with automobiles.

??? Um...well, at least you spelled everything right. FYI (http://auto.howstuffworks.com/car-financing.htm)

[FloridaPoke]

I wonder if we might even see an increase in fuel consumption because people will drive these more efficient vehicles more than they would their "clunker" since they are getting better gas mileage? I know people in central Arkansas have that mentality, they think that filling up a 13 gallon tank twice is cheaper than filling up a 26 gallon tank once.


Maybe not in the US, but consider this when global greenhouse gas debates are held. The Indians and the Chinese are launching $2,500 new cars at the same time that disposable income of their billions of people rises to a level they can now afford automobiles. So, these new 45 mpg vehicles are touted as "green". Yet, current projections are that the new "first time" car owners in India and China will reach such massive proportions that the greenhouse gases saved by 45 mpg will be offset 100 fold by new car owners emissions. And global negotiations have focused SOLELY on average fuel economy. Another example of politics of the Green.

[GoPokes83]

I was talking to a pal of mine who owns a couple of car dealerships. He's owed between 5 and 6 hundred thousand dollars at each dealership, and the money's just not coming in. According to him, the fed's gave the cash to pay the dealerships to Citibank to distribute to the dealerships. He was lead to believe the bank's making about 130 million bucks or so per day on the money, so they're reluctant to release it in a timely fashion. He says that most of the smaller dealers like him are living hand to mouth these days, and that money being withheld from the dealerships will force many, MANY of them to close. They just can't live with that much receivables on the books and still make payroll and keep the lights on. He's pissed because of the almost complete lack of oversight by the Fed's on this program.

[legelegel]

This whole program is just nuts in so many directions.

[MemphisPoke]

The two Cardinal Rules of Government Programs are:


1) Because the government is involved it will be screwed up, not well thought out and become a huge bureaucratic nightmare.


2) In case you forget, please refer to rule number one.