‘Clunker’ consumers not buying gas guzzlers, study finds

[steven johnson]

It's still not clear 'cash for clunkers' is cost-effective for the stated goals -- improved gas mileage or improved automotive industry health.

Americans participating in the 'Cash for Clunkers' program are buying new cars that get, on average, 9.6 miles per gallon more than their trade-ins.

The Transportation Department reports that consumers chose cars that on average received 9.6 miles per gallon more than their previous vehicle – a 61 percent increase in fuel economy. The data is based on 80,500 new-car sales, or roughly one third of the total number of cars estimated to have been sold in the program’s first week.

Still, Ms. Langer notes that with an average of 25.4 miles per gallon, the new vehicles purchased under CARS fall short President Obama’s stated goal of 35.5 MPG by 2016.



‘Clunker’ consumers not buying gas guzzlers, study finds
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[eleny]

1. "61 percent increase in fuel economy"

Hey, you shoot for the moon. But 61% better fuel economy isn't shabby. That's pretty darned good in my book.

[MercutioATC]

4. Yes, a 61% improvement on one third of one percent of US cars.

That's a .18% improvement overall....and we paid $3B for it.

[AZCat]

6. I calculated the reduction in petroleum consumption in another forum.

link here

I did the calculation before I was aware of the release of information, but the numbers shouldn't change that much. My analysis showed about a 0.02% decrease in petroleum consumption.

[eleny]

7. Down thread there are other benefits noted

I'm glad to help keep jobs in one of the only heavy manufacturing left in this country.

[MercutioATC]

8. Granted, but I'm looking at it from a cost/benefit standpoint.

We don't have enough numbers yet to make a determination.

We DO have some indication on the "environmental" numbers. They're an improvement, but they're a drop in the bucket. That's not a criticism, but we should view them for what they are.

[eleny]

10. Okay, you convinced me. We won't trade in my '91 DeVille

:fistbump:

[yourout]

2. I am curious how much unemployment savings CARS will generate.

I have to belive there are a substantial number of workers that are either not layed off or are recalled to meet the demand for more cars.

And if they are working they are paying taxes.

[Auggie]

3. I am too. It also trickles down to dealerships, transport companies,

auto part manufacturers, tire companies, railroads, leather suppliers, etc.

[sandnsea]

5. What? Cash for Clunkers isn't supposed to meet a 2016 goal

Very bizarre to connect that to this program.

Not real crazy about all of Langer's organization's funding sources either.

http://www.aceee.org/about/funding.htm

[Historic NY]

9. Well that was intelligent..its what the program is about...

You can't buy something worst than what you have.