Clunker Math:

Discussion in 'News and Politics' started by Guitarzan, Jan 10, 2011.

  1. Guitarzan

    Guitarzan Well-Known Member

    The person who calculated this bit of information is now & has been a professor at West Virginia University in Morgantown, West Virginia, for the last forty some years. I never looked at the clunker program in this way.

    Think of it this way:
    A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
    A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.
    So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.
    They claim 700,000 vehicles were taken off the road so that's 224 million gallons saved per year.
    That equates to a bit over 5 million barrels of oil.
    5 million barrels is about 5 hours worth of US consumption.
    More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars
    So, the government paid $3 billion of our tax dollars to save $350 million.
    Bottom line, we spent $8.57 for every dollar we saved.

    I'm pretty sure they'll do a great job with our health care, though!
     
  2. OughtSix

    OughtSix Super Member<br>2010-11 Bow Hunting Contest Winner

    All those older vehicles off the road, and we are still paying more for fuel!
     

  3. mossyhorn

    mossyhorn Well-Known Member

    but arent we saving a natural resource in the process...oil?
     
  4. TacHunter

    TacHunter Well-Known Member

    That's pretty cool! It is also disgusting, but what else would you expect from the government.:banghead:
     
  5. D33RHUNT3R

    D33RHUNT3R Well-Known Member

    Think of it this way:
    A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
    A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a year.
    So, the average Cash for Clunkers transaction will reduce US gasoline consumption by 320 gallons per year.
    They claim 700,000 vehicles were taken off the road so that's 224 million gallons saved per year.
    That equates to a bit over 5 million barrels of oil.
    5 million barrels is about 5 hours worth of US consumption.
    More importantly, 5 million barrels of oil at $70 per barrel costs about $350 million dollars
    So, the government paid $3 billion of our tax dollars to save $350 million.
    Bottom line, we spent $8.57 for every dollar we saved.



    That math is based on the first yr those cars are on the road... spread it out 10 yrs

    doing a little figuing myself answer me this.. from that math it would appear that it will pay for itself in about 10yrs.. then start saving $350 Mil a yr using those calculations ..?

    I am not a Obama supporter but if you do the math without bias it dont look that bad..
    I'm not a greenie either and I like my gas guzzling truck.. just sayin..
     
  6. FrogTacos

    FrogTacos Well-Known Member

    If 'clunkers' aren't constantly pulled of the road, its going to save nothing in the long run, and never pay for itself.

    I drive a gas hog and buy bottled water.
     
  7. D33RHUNT3R

    D33RHUNT3R Well-Known Member

    They claim 700,000 vehicles were taken off the road so that's 224 million gallons saved per year.
     
  8. FrogTacos

    FrogTacos Well-Known Member

    ...and 700,000 vehicles aint squat when you look at there being over 250 million (2007) registered vehicles in the US.
     
  9. possum

    possum Moderator<br>2011-12 Deer Hunting Contest Winner<b

    Actually, that's a pretty concrete number regardless of how many vehicles are registered. 18mpg traded for 25mpg x's 700,000 is what the math figures off of and 33 is right the math has to be figured over more than one year even though some of the numbers may change.
     
  10. FrogTacos

    FrogTacos Well-Known Member

    I get that, what I'm saying is, what wasn't a 'clunker' then, will be next year, so on and so forth. If you keep adding clunkers, you save nothing unless you constantly pull them off.

    It makes sense in my head. :shrug:
     
  11. possum

    possum Moderator<br>2011-12 Deer Hunting Contest Winner<b

    BTW....I still drive a clunker, 98 Chevy extended cab 4x4. I looked at the price of a new one and determined I wouldn't be saving a dime. :eek:
     
  12. smokin joe

    smokin joe Well-Known Member

    Hemp could replace that natural resource. Henry Ford built a car from hemp and ran it on methanol made from hemp seed. They also make bio-diesel from hemp seed.
     
  13. The reality of the clunker program is this, the vast majority of the vehicles traded in were not daily drivers.. Most were older farm/hunting/set in the yard and drive a few times a year type vehicles.. They were traded for new daily drive vehicles so in essence the daily fuel consumption increased instead of decreased for the folks that did the trading and for this country..
     
  14. Guitarzan

    Guitarzan Well-Known Member

    Very true. It was abused like all Government assist programs.
     
  15. How right you are!! Try pulling that fact out of your pocket in your next debate with a greenie though! For most of them, owning more than one car is unthinkable, so to their logic every cluncker traded in was tit-for-tat. No so...

    -b-
     
  16. southpaw

    southpaw Well-Known Member

    What's the interest rate on 3 billion dollars compounded over the same 10 years. This will be the amount you will need to figure against the amount we "saved" over the same time period.
     
  17. loki

    loki Well-Known Member

    Any time you get the idea we're saving oil...........go take a hard look at all that chinese made crap at wally world that gets used a year or so and then we put into our landfills. Cash for clunkers was all about helping out the bankers (who finance these things) and GM (the union workers who now own gm) all at taxpayer expense.
     
  18. Mule man

    Mule man Well-Known Member

    I also read somewhere that there was a hugh amount of energy lost when those clunkers were crushed. The gasoline saved is much less than the amount required to build the new car.
     
  19. Jed A

    Jed A Well-Known Member

    So the people who traded in the clunkers for new daily driver vehicles either weren't driving at all previously or parked their vehicle that got better MPG than the new one to drive the one they traded their clunker for. That's the only way fuel consumption increased.


    Cash for Clunkers was a bailout program for the auto industry. Nothing more. It just got people who were going to buy a car anyway and people who were on the fence about buying a car to go ahead and jump. The only way it helps fuel savings was by having bigger handouts on cars that got more miles per gallon.