But what was the outcome of this automotive “Feeding Frenzy”. Well let’s see…It was the highest and fastest selling 4and a half week selling period in automotive history! That’s really a good thing…I think? They claim that over 90 % of all new cars on the ground at dealerships were sold and are now residing in someone’s garage!! That sounds really good too. Many dealers are please and the profits will be good for the 3rd Quarter this year. Payments have been a little bit slow…but are now coming at a fairly good rate as of last week. Everyone in the car business is pleased and it will probably go down as the best $3 Billion Dollars of the stimulus program.
However…there is one small irony to leave you with. If a turned in clunker got 15 mpg and drove 12,000 miles per year it used 800 gallons of gas per year.
If the new vehicle gets 25mpg and runs 12,000 miles per year it uses 480 gallons per year.
So the average clunker deal will reduce consumption by 320 gallons per year per car.
They claim 700,000 vehicles were sold. So that’s 224 million gallons of gas saved in one year.
That equals 5 million barrels of oil…about 1/4 of one days consumption.
5 million barrels of oil costs $350 Million dollars @ $75 per barrel.
So…we spent $3 Billion dollars to save $350 Million dollars. Hey…but who’s counting, I loved the whole thing!!
And if you want information on how to save money now that the clunkers are gone gone…Just call or click Bob @ Vehicle Buyer’s Service.com. 503-643-4585.
Vehicle Buyer’s Service
Fact or Fiction? The Chevrolet Nova sold poorly in Spanish-speaking countries because its name translates as “doesn’t go” in Spanish. Click here for the answer.