This article was written by Mark Vaughn on Autoweek.com.
It’s been scientifically proved that 67 percent of all facts are made up. And 72 percent of readers believe that.
I forget where that’s from, but it’ll do nicely to help make sense of the cash-for-clunkers program currently causing more head-scratching than eczema, seborrhea and psoriasis combined.
First of all, why didn’t they have this program back when I actually drove clunkers? What I wouldn’t have given to get $4,500 toward a brand-new car just by wheezing my smoking-old behemoth into the dealer of my choice. Just the thought of knowing my new car would start every time I turned the key, not to mention stop every time I stepped on the brakes, would have made all the difference in the world to me and my prospects of surviving high school and maybe even college.
But no, I continued to drive the Death Pinto, numerous homicidal Volkswagens and the occasional MG because that was all I had! The motorcycles wouldn’t have qualified.
All you people today have it so easy.
Is this clunker program right? Who knows! There are so many ways to look at it. If it’s nothing more than an economic-stimulus package, then let’s just call it that. Longtime readers of the Vaughn Doctrines will tell you that I was crying out, back in the early days of the current industry collapse, to simply give vouchers to car buyers, rather than billions to carmakers, to save the industry. Seventy-two percent of readers believe that. But did anyone in the White House call me? No. Even after I offered my services as Car Czar, I was ignored.
Then I heard from an engineer friend who forwarded the following argument: It’s all a bunch of hooey.
He cited a news report that stated:
“The Obama administration appealed to the Senate Monday to bail out the popular but reeling ‘cash for clunkers’ rebate program, arguing that it already has improved vehicle fuel efficiency by over 60 percent . . .
“One official said the average fuel economy of new vehicles purchased through the program was 25.4 miles per gallon and the average fuel efficiency of the trade-ins was 15.8 mpg, representing a 9.6 mpg fuel economy increase. . . .
“The data [is] based on 80,500 vehicle transactions logged into the government’s operating system through Saturday afternoon.”
So, my friend continued:
“If the current mix of cars + trucks already returns 20 mpg if you include the older cars, we can calculate how much the national fleet average goes up as a result of shifting 80,500 cars from the trade-ins’ claimed 15.8 mpg to 25.4 mpg.
“Let’s use 140 million cars and trucks (less low-mileage clunkers traded in) getting 20 mpg. Now replace 80,500 of those that had been getting 15.8 with the same number getting 25.4 mpg.
{[(140 million – 80,500) x 20 mpg] + (80,500 x 25.4 mpg)}
=========================================
(140 million – 80,500) x 20 mpg)] + [80,500 x 15.8 mpg]
= 1.00028, or a 0.028 percent improvement in the national fleet fuel economy. Or, 0.0056 mile per gallon, fleet-wide. That’s about seven-tenths of a fluid ounce per gallon, or just under one and a half tablespoons per gallon. You would save more gasoline by press-ganging the Boy Scouts to go around with tire-pressure gauges to make sure everybody kept their tires inflated to 40 psi.”
So yes, it’s BS!
But only if you look at it as an environmental benefit. Economic-stimulus benefit, well, that’s a different thing altogether.
The thing that gets me upset is to see new-car dealers pouring liquid cement into perfectly good engines and running them till they seize. Have you ever rebuilt an engine? I’m sure you have. Many of you have probably built engines on assembly lines. All those parts, all that casting and machining and assembling, simply seized up and hauled off to be, what, melted down and made into some ugly new car? Is it environmentally sound to use all the energy to make and then, before it’s useful life is up, recycle a car?
If you look on YouTube, you can find perfectly good Mustangs, Volvos and BMWs being happily put to death so someone can buy a new car. What’s wrong with perfectly serviceable old cars? It’s like Logan’s Run, only it’s with cars!
We have to come up with some more reasonable solution than clunker laws before the government starts feeding us this great new product called Solyent Green that I’ve heard about.
If you want to save the car industry and stimulate the economy, fine. Send vouchers for new cars to new-car buyers and let them buy something. Everybody will be happy. But why waste perfectly serviceable old cars in the process? That part doesn’t make sense. If the so-called clunkers are on their last legs, they will get recycled anyway, after a specified period during which they are parked on the front lawn on cinder blocks, a period longer in some states than in others. But have some respect for the engineering and labor that went into making those things, and for the energy that will be used up to crush them, ship them overseas and melt them down again.
There, that was easy.
Next week: I solve the crisis in the Middle East.
i give props to the author for not making this an anti-obama/political thread. what he says does make sense to a degree. i believe this program’s true nature is the help the wheezing US economy out of this slump. some may not believe but our economy is pretty much dependent on how detroit survives, this C4C deal is the exact shock to the pulmonary system it needs. if one thinks on the global scale it will help tremendously also, as buyers are buying (along with US brands) foriegn makes as well. as much as people like to hide under a rock and hate to admit but we do live in a global economy, if someone buys a Camry you are supporting Japan AND america as well (because that vanilla turd is made in the land of fried chicken…Kentucky). i am now prepared to hear some rant on how i suck and should move out of the US.
also to tack-on. the entire global economy pretty much rests on how much we as consumers decide to spend. if we stop buying goods, then the entire system crashes. when the market tanked, everyone stopped spending money. consumers started first, that affected small business owners first, then it went to big business, from there the entire system pretty much crashed. so if we start buying cars again it will help detroit, who will then build more cars, if they build more cars they need parts from their suppliers, if they need parts from their suppliers, then the suppliers need raw matierals, and so on and so forth.
oh btw x2 here the list of the top ten traded cars thus far. i’m pretty sure none of these excellent road machines will be misssed:
The Ten Most Traded-In Vehicles (vehicle’s EPA mileage)
1. 1998 Ford Explorer (14-17 mpg)
2. 1997 Ford Explorer (14-18 mpg)
3. 1996 Ford Explorer (14-18 mpg)
4. 1999 Ford Explorer (14-18 mpg)
5. Jeep Grand Cherokee
6. Jeep Cherokee
7. 1995 Ford Explorer (15-18 mpg)
8. 1994 Ford Explorer (15-18 mpg)
9. 1997 Ford Windstar (18 mpg)
10. 1999 Dodge Caravan (16-18 mpg)
^^^^definitely won’t miss those. But I agree with the article, where they question: why do we really have to crush anything?? Just give the discount on the new car, and be done with it. Also, does anyone else worry that all these people are just going to get into new auto loans that they ultimately cannot afford… and just recycle a crashed economy?
I’m with Wooley on this one. At a basic level, this is a great idea. It gives people a price break and allows them to possibly have something that they otherwise would not. However, there lies the problem. Just look at our credit card and housing situation. It is obvious that the American people do not know how to budget and spend accordingly. They just swipe the plastic and deal with it when it becomes an issue (or don’t). This program is simply sending the message that it is OK to buy a car that you probably can’t afford. I have tons of friends with full time jobs that can afford a newer car, but not a damn new car! You’re trying to tell me that Joe Schmoe and Billy Bob can now trade in their IROC Z’s for a new car?! No way those payments are going to be made on time. I’m not saying that everyone is like this, however this program simply promotes it more.
This program would be much more efficient if it was simply a trade-in for a voucher for any car (new and used) from a dealership. This seems more attainable to me. It might not exactly creae as much revenue for the manufacturers, but it will vastly help out these ailing dealerships. In fact, most car dealers make more money off of used cars anyway 🙂
^true but buying a used car will no way help the manufacturers out. which is the basis for this whole deal. the reason that it is somewhat logical to crush all those exploders is simple. they emit co2 in literally truckloads. by removing those machines from the road will have an profound effect on environment in the long term and short term.
Point taken. Just like all plans, it has positives and negatives. So far, this plan has been a good thing. A temporary boost for the economy. We will not know the true effect for years though. Yousef, I think that this the first time that we have had a debate with name calling, racial slurs, etc. Good job. By the way, I sent your sunglasses in the mail to your job. I used the alias “Osama”……good luck with that.
^^^^ you said “with”, and you meant to say “without”. Makes it mo’ funny to read though.
All I know is I used to drive a 98 Windstar and it was awesome. That’s all.
yes it is markedly the first time i haven’t called you a penny pinching jew in one of our debates….
Or you, a turbin wearing terrorist.
you spelt turban wrong you tool…LOL
Damnit! God I hate you……V DUB driving Nancy boy.
i dunno how effective it is, because i don’t really look into new cars at all. are the dealerships raising the prices so that it events out? knowing dealerships, consumers probably aren’t even saving any money, and the old motors are getting trashed for nothing. i don’t see the value of destroying running motors. for those who actually try to live within their means, maybe they need that motor to keep their old piece of crap car running.
i’m also not sure how valuable it is to the economy to get people into contracts that they ultimately won’t be able to afford, isn’t that one reason we got into this problem in the first place? i personally don’t have any debt besides my student loans, and take some pride in not putting myself further into the hole every time i see something shiny and new. but when it seems that hardly anyone else thinks the same way, i wonder if it’s even worth it =p why worry about anything, when uncle sam will bail you out? it kinda scares me that i can even start to think that way.
^^^^ very true
well if you can’t afford it then one should not buy it. it’s not like the government is forcing you to buy those cars. they are just offering an incentive. people need to be personally responsible for their own actions. if you bought a car that you can’t afford that is your fault, you should have enough common sense not to buy it. i understand if you get laid off, or some other traumatic event happens, but if you make $20K a year and bought a $50K lexus then you’re an idiot. i have the same argument to people who sue tobacco companies. everyone knows cigarettes cause cancer along with a host of other diseases, you still decide to smoke them and wind up with a disease, that is your own damn fault. there is no reason to sue the tobacco companies because you were to dense to realize that you are causing yourself irreparable harm.
the bottom line is we paid a few billion dollars so far to hydrolock a bunch of motors… what? if that’s going to save us from melting ice caps and baby penguins getting sunstroke, why didn’t al gore just fly around with his jetpack and pour water into people’s motors? as already stated, the government could just as easily just given everybody a rebate coupon.
shit, for a few billion dollars, i will go around all day and hydrolock people’s motors. i will singlehandedly re-stimulate our auto, tire, oil, food, music, liquor, and healthcare industry by drifting a brand new genesis coupe everyday while eating chicago style deep dish pizza with willie nelson riding shotgun, gathering inspiration for his new country/metal hybrid album that advertises his new super moonshine that will make people far too drunk to worry about their medical problems, permanently.
well 180,000 cars have been traded in thus far. if you look at the list i posted above, the list is filed with utter crap. so basically 180,000 ford explorers have been traded in for more efficient and ‘greener’ vehicles. so yes it will make a difference, but no it will not stop the melting of the ice caps but it’s a start.
LOL! Baby Penguins getting sunstroke!? Al Gore in his jetpack!? Ahahahahaa! You are awesome man!
My name is Al Gore and i approve of kOOpA’s message.
http://www.youtube.com/watch?v=F_yNt7F3LPk
just for you baby cakes
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New Film from wagenwerks on Vimeo.
Worthersee Tour 2009 Teaser from wagenwerks on Vimeo.
LOGANS RUN REFERENCE! HAHA!
the cars aren’t getting crushed. they are putting liquid glass in the motors and then the cars are coming to where i work and sold as salvage/parts cars.
I feel like that’s a waste. Shit it seems like sooomebody could use that car. Hell – give ’em to women who have been beaten up by their husbands to get the hell out… something.