The Motley Fool Discussion Boards
Retirement Discussions / Retire Early Liberal Edition
|Subject: Re: cahs for clunkers - disaster of a program||Date: 1/11/2013 11:58 AM|
|Author: telegraph||Number: 47275 of 55740|
mark:"If you trust that 1850 gallons are used to make an average new car (I have no idea). "
It takes the ENERGY equivalent of 1850 gallons of gas. SInce much of that energy is electricity......from coal..it pollutes even worse than gasoline when burned. From the environment standpoint, you are needlessly spewing extra CO2 into the air.
mark:"And use the stated mpg gains in the report (from 15.8 to 25) and not the minimal required gains in the law (4 mpg better than the old car), which is a massive difference by the way."
Only if you take the 'highway miles'...which most folks don't do for their daily commute. Those first five miles is usually pretty miserable no matter what kind of car you have until it warms up.
mark:" Then you end up with the following (quick google search showed average mileage is anywhere from 10k to 15k per year, and 20k was mentioned in one article):
10,000 miles driven per year --> 8 year break even point"
That assumes a 10 mpg increase...... and most folks don't break even since they have traded away a car that likely had higher resale value in the market......unless it was a broken down wreck, barely able to move in which case the taxpayer got snookered.
And of course, you forgot to include the 'cost of money' , ie interest - which was, what at the time? 6 or 8% or higher for a car loan? That took the payback to way over 10 years.
As for the environment, 1850 gallons of energy was spewed out NOW.....advancing the creation of CO2....which would not be broken even for over 8 years.......and by then, likely half of those cars would be off the road - dead, crashed, stolen, or worn out. From an ecological standpoint, you'd lose coming and going
The only ones who 'won' were the car companies, government motors, and of course, the unions and their fat pension and health benefit plans. It was a bailout for them.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|