Cash-for-Clunkers Savings and the Government's Genius Business Plan

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 cash-for-clunker transaction will reduce US gasoline consumption by 320 gallons per year.

Government bought 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 great a deal was that ???

They'll probably do a great job with health care though.

(Thank you Joe Schilp for the information and numbers)