Cash for Clunkers a bust, Big Surprise!
Geez big surprise that yet another Obama stimulus program wastes your money. This waste of tax payers money was another of the numerous Obama paybacks to big money contributors. This time it was the UAW who along with miserable management at GM and Chrysler drove these companies into the ground. The numbers for the Stimulus plan are even crazier, the estimates
range from $92.000 to $160.000 per “Job Saved”. Some estimates run as high as $250.000, does anybody else see this as crazy. If the media would just put down there Obama Kool-Aid for 2 goddamn minutes and actually report news instead of regurgitating DNC talking point propaganda, people might actually get pissed off. Why voters don’t understand these dollars spent are out of there wallets and the families futures.
Cash for Clunkers Tab: $24,000 Per Vehicle of Taxpayer Cash
This summer’s so-called Cash for Clunkers program cost taxpayers $24,000 per vehicle sold, Cash for Clunkers car – 255.JPGaccording to an analysis by Edmunds.com.
Nearly 690,000 vehicles were sold during the Cash for Clunkers program, officially known as the Car Allowance Rebate System (CARS), but Edmunds.com analysts indicate that only 125,000 of the sales were incremental. The rest of the sales would have happened anyway.
Analysts divided three billion dollars by 125,000 vehicles to arrive at the average $24,000 per vehicle sold. The average transaction price in August was $26,915 minus an average cash rebate of $1,667.
“This analysis is valuable for two reasons,” explained Edmunds.com CEO Jeremy Anwyl. “First, it can form the basis for a complete assessment of the program’s impact and costs. Second — and more important — it can help us to understand the true state of auto sales and the economy.”
For example, Anwyl pointed out, October sales are up, but without Cash for Clunkers, sales would have been even better. “This suggests that the industry’s recovery is gaining momentum,” he said.
Edmunds.com’s research further indicates that without Cash for Clunkers, many customers would not have traded in their old vehicles.
“That may give some credence to the environmental claims, but unfortunately the economic claims have been rendered quite weak,” said Edmunds.com Senior Analyst David Tompkins, PhD.
The below chart sets forth actual SAAR (Seasonally Adjusted Annual Rate) compared to the forecasted rate if the program had never been put into practice.