Given that the Cash-for-Clunker program ended yesterday, I started wondering how much it actually lived up to its promise (A Reminder Why Cash-for-Clunkers Is Such A Brilliant Idea and A Threefer: Stimulate The Economy, Reduce Foreign Oil And Help The Environment).
Based on my analysis below, I'd say it is a Threefer that far exceeded its potential.
Clunker Facts |
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625,000 - | # of new cars due to Clunker program as of Monday | source |
12,500 - | avg miles driven per year | source |
7,812,500,000 - | avg miles driven by these new cars per year |
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16 - | avg clunker trade's mpg | source |
26 - | avg new car's mpg | source |
10 - | avg mpg improvement of new car vs. clunker |
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63% - | avg % improvement in gas mileage |
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Gasoline Savings |
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488,281,250 - | gallons of gas clunkers needed to drive avg yearly miles |
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300,480,769 - | gallons of gas new cars need to drive avg yearly miles |
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187,800,481 - | gallons of gasoline saved annually |
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Economic savings |
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$2.62 - | Avg cost of gas - 8/24/09 | source |
$492,037,260 - | Gas savings - national |
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$787 - | Gas savings - individual |
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$1,000 - | Estimated savings from not having a Clunker to repair |
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Environmental savings |
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0.00881 - | metric tons of CO2 saved per gallon of gas | source |
1,654,522 - | metric tons of CO2 saved per year |
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I belatedly found this interesting tidbit about the Clunker's stimulative effects
here:
An unexpected trend is the sales to consumers who do not qualify for the government program. Chip King, from www.JerrysToyota.com, says that "over half the consumers who initially inquired about the program did not qualify but many of them bought a car anyway due to the unprecedented manufacturer and dealer incentive programs, "explains King. "We are having our best used vehicles sales month all year because consumers who don't qualify for the program are buying certified pre-owned cars," said Brian Benstock from www.ParagonCars.com. "For every vehicle sold to a consumer who is eligible for the government program we have sold another vehicle to consumers who did not qualify."
[Update] Many of the commenters below are debating the economic and energy aspects of the program. While that's true and good, folks should not forget the CO2 reducing aspect of the Clunkers program. On the environmental score alone, it's a winner ... can anyone name a more successful CO2 reduction program?
Nonetheless, it is exactly this threefer benefit (economy, energy, environment) that made Clunkers brilliant.