View Full Version : Cash for Clunkers (juicy topic)
as you know the stimulous package put out $1B in gov credits for customers who traided in their gas guzzlers/eco unfriendly cars for newer cars that got better gas mileadge, and better emmisions.
Dems say great but yet Reps still take a crap on everything. So did some research
Lets gets some basic figures out there
Today a barrel of sweet crude is $72per
Texas and Aribic sweet crude yeilds about 13.44 gal of gasoline per barrel
Its only been a week, but here are the early reports.
220,000 trade ins that qualified have occured. Totally $920,000,000 in credits
The avg old veh got 15.8mpg, and the avg new veh gets 25.3mpg which is a diff of 9.5mpg
(side note american and foreign split the sales at 50/50, and 50% of the foriegn cars were MADE IN THE USA anyway)
the avg person supposedly drives 12,000 per year, and 60,000 miles over a 5 year term.
old car @ 60k miles comsumes 3,797 gal
new car @ 60k miles consumes 2,371 gal
difference is 1,426 gal per car
multiplied by 220,000 cars sold
is 313,720,000 gal saved
divided by 13.44 gal of gasoline per barrel
is 23,342,261 barrels
multiplied by $72 per barrel
is $1,680,642,857 in oil
minus the $920,000,000 the gov put out
totals $760,642,857 savings
what about the stimulous part?
well if the avg person does drive 1000 miles per mo, according to the 15.8mpg vs the 25.3mpg it would save the avg person 23.77 gal of gas consumed at the avg. cost of $2.50 per gal or $59.42 in gas costs per vehichle. Now in my house we have two cars which would be $120 in saving that we can use to help pay more bills, buy a few more things we need, and hey maybe splurge a bit. hey thats 26.4M per mo back to the economy or 1.584B over 5 years...
bored out of your ****ing mind arent yah?
Crimson Shadow
08-07-2009, 17:00
or just got an email FW and posted it here to look smart :p
JK maggio
no i did the research because its all over the news, but no one will give you all the info, and i wanted to see if it was a good deal for me.
You forgot to include how much you would be spending to pay for the new car everymonth, because afaik, this is a trade in deal...
well your only going to want to trade in a real clunker, meaning that you only want to trade in a really older car that is paid off, because the dealer cant give you anything on the trade. The cars are to be recycled only and cannot be resold, so if you got a car like me that is paid for and worth nothing (500-1500) then your either dumping money into it anyway, or about to be.
Disorder
08-07-2009, 22:22
Nice post Maggio.. Thanks for putting the math together for us.. I approve of the cash for clunkers stimulus, and yes, I am Republican.. Im for whatever works.. As for the clunckers, the local Chevy dealer here has been parking clunkers out front, and from what I can see... I doubt many of them would produce much more than 1k miles within their final years on earth, much less per month.. I believe they could have found a better way of handling the trade in cars..im sure many are worth something, even parting them out for parts... but our goverment has never gotten anything right, so why start now......
I am not saying its the best, but I do think its better than Bank Bailouts and CEO bonuses. Obama is supposed to sign a new bill any second for an additional 2Bill so triple those numbers.
One thing could be that if 660,000 cars are recycled then the price of some materials could go down so that more bridges and such can be built.
Disorder
08-08-2009, 09:14
I am not saying its the best, but I do think its better than Bank Bailouts and CEO bonuses. Obama is supposed to sign a new bill any second for an additional 2Bill so triple those numbers.
One thing could be that if 660,000 cars are recycled then the price of some materials could go down so that more bridges and such can be built.
Yes, much better than the bank bailouts.. those are crazy.
If only the Canadian government followed suit and did the same thing. I mean, $4500 off a car is a pretty big deal. $20000 - 45000 = $15500
I have an old van I've been driving for the past 2 years (was my parents) and not only does it have engine problems, its a big gas consumer. If this deal came to Canada, I would be all over it.
as you know the stimulous package put out $1B in gov credits for customers who traided in their gas guzzlers/eco unfriendly cars for newer cars that got better gas mileadge, and better emmisions.
Dems say great but yet Reps still take a crap on everything. So did some research
Lets gets some basic figures out there
Today a barrel of sweet crude is $72per
Texas and Aribic sweet crude yeilds about 13.44 gal of gasoline per barrel
Its only been a week, but here are the early reports.
220,000 trade ins that qualified have occured. Totally $920,000,000 in credits
The avg old veh got 15.8mpg, and the avg new veh gets 25.3mpg which is a diff of 9.5mpg
(side note american and foreign split the sales at 50/50, and 50% of the foriegn cars were MADE IN THE USA anyway)
the avg person supposedly drives 12,000 per year, and 60,000 miles over a 5 year term.
old car @ 60k miles comsumes 3,797 gal
new car @ 60k miles consumes 2,371 gal
difference is 1,426 gal per car
multiplied by 220,000 cars sold
is 313,720,000 gal saved
divided by 13.44 gal of gasoline per barrel
is 23,342,261 barrels
multiplied by $72 per barrel
is $1,680,642,857 in oil
minus the $920,000,000 the gov put out
totals $760,642,857 savings
what about the stimulous part?
well if the avg person does drive 1000 miles per mo, according to the 15.8mpg vs the 25.3mpg it would save the avg person 23.77 gal of gas consumed at the avg. cost of $2.50 per gal or $59.42 in gas costs per vehichle. Now in my house we have two cars which would be $120 in saving that we can use to help pay more bills, buy a few more things we need, and hey maybe splurge a bit. hey thats 26.4M per mo back to the economy or 1.584B over 5 years...
Maggio your looking over the fact that most of the "clunkers" traded in were most likely old cars that have been paid off so no car payment and the liability only insurance option. Thus its actually costing more (but you get a new eco/gas friendly car). Now i'm not bashing the cash for clunkers program. I personally think it was a very good idea, and i think its disgusting how simple minded americans eat up everything fox news says about it and think its such a terrible program just because fox said so.
I have an old van I've been driving for the past 2 years (was my parents) and not only does it have engine problems, its a big gas consumer.
does it also have a free candy magnet on the driver side door?
Actually, a free cookie magnet :)
Nice to see that germany is once again the trend-setter when it gets to cars (yes, we were the first to introduce it)
altho the scale of the US ones is riddiculously tiny. I think in Germany we managed to spend the 3 bn EUR (4+bn USD) in 3 months, what moron thought that 1 bn USD would last more than a week in a country severa ltimes larger....
My dad works at a Toyota dealership and the only problem with the program is that the government wasn't ready for the huge demand in such a short span and now dealers are stuck waiting for reimbursement since they fronted the money and the site the Gov. set up is slow and pretty much non-functional. Which means they are all short on capital in a very bad recession.
as you know the stimulous package put out $1B in gov credits for customers who traided in their gas guzzlers/eco unfriendly cars for newer cars that got better gas mileadge, and better emmisions.
Dems say great but yet Reps still take a crap on everything. So did some research
Lets gets some basic figures out there
Today a barrel of sweet crude is $72per
Texas and Aribic sweet crude yeilds about 13.44 gal of gasoline per barrel
Its only been a week, but here are the early reports.
220,000 trade ins that qualified have occured. Totally $920,000,000 in credits
The avg old veh got 15.8mpg, and the avg new veh gets 25.3mpg which is a diff of 9.5mpg
(side note american and foreign split the sales at 50/50, and 50% of the foriegn cars were MADE IN THE USA anyway)
the avg person supposedly drives 12,000 per year, and 60,000 miles over a 5 year term.
old car @ 60k miles comsumes 3,797 gal
new car @ 60k miles consumes 2,371 gal
difference is 1,426 gal per car
multiplied by 220,000 cars sold
is 313,720,000 gal saved
divided by 13.44 gal of gasoline per barrel
is 23,342,261 barrels
multiplied by $72 per barrel
is $1,680,642,857 in oil
minus the $920,000,000 the gov put out
totals $760,642,857 savings
what about the stimulous part?
well if the avg person does drive 1000 miles per mo, according to the 15.8mpg vs the 25.3mpg it would save the avg person 23.77 gal of gas consumed at the avg. cost of $2.50 per gal or $59.42 in gas costs per vehichle. Now in my house we have two cars which would be $120 in saving that we can use to help pay more bills, buy a few more things we need, and hey maybe splurge a bit. hey thats 26.4M per mo back to the economy or 1.584B over 5 years...
Also, don't forget that your variables change. The barrels of oil will go up. People also had to buy new cars, not used ones, so the dealers were able to get their stock off the lot (it was sitting there from when the credit sector crashed). It was a way for the government to bailout some of the American auto makers without just handing them money.
My dad works at a Toyota dealership and the only problem with the program is that the government wasn't ready for the huge demand in such a short span and now dealers are stuck waiting for reimbursement since they fronted the money and the site the Gov. set up is slow and pretty much non-functional. Which means they are all short on capital in a very bad recession.
yea, but its a bit like saying "its workign too well, it sucks"
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