Cash for Clunkers (juicy topic)

[MAGGIO]

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...

[Mhaphew]

bored out of your ****ing mind arent yah?

[Crimson Shadow]

or just got an email FW and posted it here to look smart




JK maggio

[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.

[Mhaphew]

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...

[MAGGIO]

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]

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......

[MAGGIO]

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]

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.

[Xavior]

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.