9/14/09

Cash for Clunkers Raw Deal

I guess I must be on the wrong page…

*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 better job with health care though!!