roscoedoh Posted September 15, 2009 Report Share Posted September 15, 2009 Consider this: 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!! Quote Link to comment Share on other sites More sharing options...
sphingta Posted September 16, 2009 Report Share Posted September 16, 2009 just a qiuck observation. you only get abouy 19.5 gallons of gas from a barrel of oil so you need to divide your result by .46 which brings a saving of abot $850,000,000 which is still not a great return on your money but sizable. Quote Link to comment Share on other sites More sharing options...
Ron J Posted September 17, 2009 Report Share Posted September 17, 2009 Cash for clunkers may have helped with more than trying to save oil. If it creates "any" stimulation of the automotive industry, it will help. I'm not sure it did or will, but I'm guessing it at least used up some standing inventory of vehicles. I am seeing some increase of work in auto related suppliers that we deal with. No one knows if it will last. It may only be restocking empty shelves and die shortly. It's one thing to say "let them go broke - they deserve it". Any one remotely involved with that industry knows how far reaching their influence is in our economy. When they stop, everything stops. I have seen some major players simply close down this past 8 months. One company was 138 yrs old. They were gigantic. Their fasteners are literally everywhere - I'm sure we all have some in our garages and basements. They were so ingrained in automotive that the slow down choked them to death. Maybe it wasn't wise to be that dependant on their part. I do know that all their jobs were lost and they probably sustained several outside suppliers as well. It's wild to see the numbers. Whatever this knucklehead does I don't think it will be as bad as our "strong economy" that W bragged about during 2004-2007. Just my take. Quote Link to comment Share on other sites More sharing options...
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