Friday, October 30, 2009

Cash for Clunkers Program Costs U.S. Taxpayers $24,000 Per Car!

This government is so inept. It spends trillions of dollars to generate billions and calls that progress! Yet, the Ca$h for Clunkers Program was hailed as a great success. Yet, the program cost us $24,000 per car and only generated 125,000 net new sales. Yet another failure!

A total of 690,000 new vehicles were sold under the Cash for Clunkers program last summer, but only 125,000 of those were vehicles that would not have been sold anyway, according to an analysis released Wednesday by the automotive Web site

The Cash for Clunkers program gave car buyers rebates of up to $4,500 if they traded in less fuel-efficient vehicles for new vehicles that met certain fuel economy requirements...

The average rebate was $4,000. But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009... That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.

Source: CNN Money

Image Source: Tom Harpel

No comments: