[...] also show another measure of good faith. The Administration paid out more than $2.9 billion for the Cash-for-Clunkers program under which auto dealers sold about 700,000 new vehicles in 30 days, replacing 700,000 older, lower [...]

http://money.cnn.com/2009/08/07/autos/cash_for_clunkers_sales/

I know a guy where I work, who traded in his old truck (10 mpg) for a new full sized truck that makes 15 mpg!

Those facts are indeed interesting. But there are so many variables to consider. Were all of the top 10 traded in American because American car companies neglected fuel efficiency for so long? Or because their quality is lower? Or because the perception of quality is lower? I don’t know the answers, but there has to be a reason, right?!

The fact that 8 of the 10 purchased were from Asian car manufacturers, though, doesn’t mean our countrymen aren’t being helped. A lot of “domestic” cars are made in Mexico or other countries and a lot of “foreign” cars are made in America. In fact, I don’t know if this still stands but at one point the “Most American” car in terms of labor AND parts was the Honda Accord.

For the US automakers that didn’t get a huge push, the auto suppliers will. That will help the US automakers if you think about it.

The economic and diplomatic impact of increased fuel efficiency is an interesting one.

Let’s do some quick math:
The average increase in fuel efficiency from the clunker to the new car was 9.1 mpg. The average American drives somewhere around 15,000 miles per year. (Gallons used @ 15.8 = 950 ; Gallons used @ 24.9 = 603 ; Gallons saved per year by getting rid of clunker = 347)

690,114 cars were sold with each saving 347 gallons per year, on average.

Total gallons of gas saved per year: 239,469,558

Now, how many barrels of oil did that save us per year? Using the better refining methods, you can yield about half of a 42 gallon barrel of oil into gasoline. So we will use 21 gallons of gas per barrel (42 gallons) of crude oil.

Thus, 239,469,558 gallons of gas came from 478,939,116 gallons of crude oil using a better than average refinement ratio. Divide the gallons of crude oil by 42 gallons/barrel and you get 11,403,313 barrels of crude oil. Per day that equates to 31,242 barrels.

As of 2007, the USA consumed 20,680,000 barrels of crude oil per day!

Safe to say that Cash for Clunkers cut oil consumption by 0.15%? Don’t know. But using a lot of averages it may be the case!

Interesting thought exercise nonetheless.

I echo your sentiments. The unfortunate answer to “Where does the money come from to pay for this, and defense spending, and all the other BS that the government writes up under the premise of “economic stimulus”.” is, as you are surely aware, other countries.

[...] My Life ROI-Cash for Clunkers Results are in [...]

[...] Cash for Clunkers results are in! Here’s the scoop from My Life ROI. [...]

[...] had a good conversation over at MylifeRIO about the cash for clunkers program. AKPC_IDS += "785,";Tweet This!Share this on TipdShare this on [...]

It is nice to see GM did benefit, because from the looks of the reports the Asian carmakers benefited quite a bit as well…
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