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Smart Shopper Cash for Clunkers - Does it Work for You?
2647 messages, Last post on Oct 01, 2009 at 6:33 PM
You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester
Edmunds Cash for Clunkers Calculator
I Traded My Clunker and Bought a....?
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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 (of Taxpayer money - - appropriated & spent by Congress !!) to save $350 million. How good a deal was that ??? They'll probably do a great job with health care though !!
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Replying to: euphonium (Sep 19, 2009 10:08 pm) Yes, but over the 10 year lifetime of those new vehicles we'll just about break even!  On the other hand, most of the clunkers that were traded in probably wouldn't have lasted through 10 years and likely would have been traded in for ... drum roll ... more fuel efficient vehicles. Break even can be elusive.  tidester, host SUVs and Smart Shopper |
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Replying to: euphonium (Sep 19, 2009 10:08 pm) That's just the savings for the nation from having the vehicles off the road. But the other key points you missed in your SOTP analysis is 'how much additional taxes were generated by this program?' For the months of July/Aug revenues at millions of jobs and businesses across the nation jumped by 10-30%. A jump in revenue means a jump in taxes paid/due. A good estimate is that of the $3 Billion allocated to the public the government immediately collected about $1 Billion in taxes. Net cost....$2 Billion. Slick. Now...you can begin to factor the savings for the nation in money not spend for fuel over the next 'X' years. The net cost for the nation is about ZERO. If the healthcare program works as well as this...it will be a raging success. Only the chronic complainers will continue to complain. But they can't be helped. |
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the gas savings was just a red herring or smoke screen. This progagram was all about giving a bailout to the auto industry, without just handing over the money like with the banks. hey, maybe that's what the banking bailout should have been. Give everyon that payed takes last year but made less than 75K $500 in a bank account! also, the taxes are 2 different pockets. The feds paid the 3bill, but the sales tax windfall went to the states and sometimes local coffers.
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Looking for a second vehicle in the house. Actually starting to see some C4C purchases in the classifieds already due to payment issues and / or buyer's remorse. C4C just might work for me after all.. |
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well, depending on what you traded in, what you bought, and how good a deal you got, it si possible that someone might be able to turn a profit by flipping the new cr. if you traded in a $300 POC, and got a killer deal on something that holds value (say, a civic), you might be able to resell the civic now with barely any miles, and take less than the $4500 C$C bonus in depreciation. pay 17K, sell for 15K, still a couple grand ahead. |
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Replying to: stickguy (Sep 20, 2009 8:25 am)  My income doubled in July and Aug over what it had been the prior 8 months. Ditto all my fellow sales people, F&I guys, aftermarket ladies, aftermarket vendors, truckmen, distribution people, etc, etc etc. If my income doubled .... Uncle Sam's income doubled too. So did all the states that have state income taxes. Then there are the dealers and vehicle makers and all the suppliers to each of these two huge groups. Their business jumped by 30% so the IRS is due to receive a bunch of money on Oct-15 when the quarterly taxes are paid. And yes the States did make out like bandits as 690,000 vehicles generated state sales taxes of about $700 million in a 6 week period. Windfall from the pockets of those that can afford it the most. The wealthy and well-organized. The people that organized this and put it into motion were and are awfully awfully smart....and there's a lot of them.
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Has anyone heard of being charged a MV Fee on the clunker? I paid an estimated MV Fee on my contract, which I assumed was for the new vehicle that I bought and expected a refund of the difference. When I received the check there was an extra $20 taken out which the salesman said was for the clunker vehicle (transfer of registration or something to that effect). I know its only $20, but its the principle. Also, the salvage fees - is that something that's automatic, or something that should have been negotiated before and entered on the contract? Thanks. |
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Replying to: kdhspyder (Sep 20, 2009 4:25 pm) C'mon, Bob. You know better than that. If your income doubles for 2 months of the year, and remains at the same, lower level for the other 10 months, then your annual income has only increased ~17%, which is what your taxes are based on.
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Replying to: euphonium (Sep 19, 2009 10:08 pm) Great deal when you put it that way. Also, less demand on oil lowers energy costs and helps the entire economy. |
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