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Have you applied math to Cash for Clunkers?

CASH FOR CLUNKERS:

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.

How good a deal was that???

They'll probably do a great job with health care though!!

Answer Question
 
Anonymous

Asked by Anonymous at 1:23 PM on Sep. 9, 2009 in Politics & Current Events

Answers (20)
  • You forgot the cost of compacting the clunkers, and the loss of revenue to used car dealers who no longer have those cars to sell or the finance companies who can no longer earn interest off loans for those cars.
    NotPanicking

    Answer by NotPanicking at 1:26 PM on Sep. 9, 2009

  • Nicely done !

    Thanks !
    waldorfmom

    Answer by waldorfmom at 1:31 PM on Sep. 9, 2009

  • 700,000 vehicles. Where did these vehicles go? I know in my community and in others they had to be crushed so they could not be salvaged and most are taken to the landfill to leak and pollute. The cost to recycle is expensive and since many dealers are not being paid yet they had to do something with the clunkers. So any benefit has been lost.
    Anonymous

    Answer by Anonymous at 1:31 PM on Sep. 9, 2009

  • You also forgot the amount of money we will make from selling them to China, as well as the cost that might be associated with all of the administrative procedures as well as the cost to ship the crapped metal.
    kk_bella

    Answer by kk_bella at 1:33 PM on Sep. 9, 2009

  • Scrapped, not crapped. OMG too funny!
    kk_bella

    Answer by kk_bella at 1:34 PM on Sep. 9, 2009

  • Well, healthcare will be DIFFERENT!!!!

    Lol.
    fluud7

    Answer by fluud7 at 1:49 PM on Sep. 9, 2009

  • "Where did these vehicles go? I know in my community and in others they had to be crushed so they could not be salvaged and most are taken to the landfill to leak and pollute."

    They don't go to landfills. The wrecking yard operator I interviewed explained this way: The cars are first parted out. The remaining engine and frame are crushed and shredded...and the scrap metal then gets sold, generally to overseas buyers.
    gdiamante

    Answer by gdiamante at 2:18 PM on Sep. 9, 2009

  • They don't go to landfills. Also, from what I have heard, because so many cars were sold they now need new cars. This means that people who were not working are working again, That's a good thing.
    Anonymous

    Answer by Anonymous at 2:36 PM on Sep. 9, 2009

  • They don't go to landfills. The wrecking yard operator I interviewed explained this way: The cars are first parted out. The remaining engine and frame are crushed and shredded...and the scrap metal then gets sold, generally to overseas buyers.

    In my community they are going to the landfill. Maybe that is not happening everywhere but it is happening here. The dealers said it was much easier. I noticed the piles of crushed cars in with the trash when we made our business' monthly trash run. I was devastated to see all the crushed cars mixed in with the trash. There were so many of them.
    Anonymous

    Answer by Anonymous at 2:37 PM on Sep. 9, 2009

  • Have you applied who benefited from the cash for clunkers program? This was supposed to be a program to stimulate the American auto industry. Toyota a Japanese based manufacturer sold the most following with GM who is basically owned by the government since they received their bailout. One vicious circle.

    BTW, Good math mama.
    Anonymous

    Answer by Anonymous at 2:46 PM on Sep. 9, 2009

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