Tuesday, September 8, 2009

Cash for clunkers summary

A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year ofgasoline. 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 consumptionby 320 gallons per year. They claim 700,000 clunkers were traded in – 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 at $75 per barrel costs about $375 million dollars.

So, $3 billion Tax dollars were spent to save $350 million so people with clunkers could buy a new car?