Tuesday, September 1, 2009

Cash for Clunkers.....what a bargain

Got this from a friend at work. Thought it was insightful and worth posting.....

Clunkers...

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???

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