Actual gov't cost per clunker: $24,000

[osprey4]

Seen on that bastion of government-bashing conservatism: CNN

Quote:

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, according to Edmunds.com. That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.

"It is unfortunate that Edmunds.com has had nothing but negative things to say about a wildly successful program that sold nearly 250,000 cars in its first four days alone," said Bill Adams, spokesman for the Department of Transportation. "There can be no doubt that CARS drummed up more business for car dealers at a time when they needed help the most."

I'm sure all the taxpayers that donated toward the program to help car dealers would agree with Mr. Adams.

[Steve R Jones]

If I click on the link will it give specific, detailed instructions on how they came up with the 24grand number?

[MTAtech]

Quote:

But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009

First, someone is presuming that those sales would have happened some time during 2009. They really don't know.

Wasn't the purpose of the CFC program to getting people to make a purchase earlier instead of later, thus giving the economy a jump-start that will have a multiplier effect?

[Pexster]

I sure would like to see the reasoning that turns a $4,000 rebate into a $24,000 cost.

[pickel]

I heard that the CFC's money is going considered TAXABLE income ???? That would put a BIG damper come next April 15 th . My Firebird didn't qualify for the CFC because it gets 27 mph. I asked the salesman, if my Firebird got 27 mpg and was manfg in 1991 , why don't the newer cars over 40 mph. He said the oil cos. wouldn't let the car cos. develop car with better mpg. It's all a big conspiracy BASTARDS

[tony_j15]

Quote:

Originally Posted by pickel

He said the oil cos. wouldn't let the car cos. develop car with better mpg.

It's actually the government, and our retarded rules involving diesel (it ain't your daddy's dirty fuel! Diesel is just as clean and efficient as some other hybrid technologies). There are only two models available in the US that get 40+ mpg (Civic Hybrid and Toyota Prius). However, there are one hundred and thirteen models available overseas that get better than forty miles to the gallon. Insult to injury? Almost two thirds are manufactured by Ford and GM.

tl;dr
car salesmen are idiots who shouldn't be trusted.

[MTAtech]

Quote:

Originally Posted by tony_j15

It's actually the government, and our retarded rules involving diesel (it ain't your daddy's dirty fuel! Diesel is just as clean and efficient as some other hybrid technologies). There are only two models available in the US that get 40+ mpg (Civic Hybrid and Toyota Prius). However, there are one hundred and thirteen models available overseas that get better than forty miles to the gallon. Insult to injury? Almost two thirds are manufactured by Ford and GM.

That's a bit misleading. Diesel does get better mileage but it takes 1/3 more crude oil to make diesel than gasoline.

[MTAtech]

Quote:

White House fights back on Cash for Clunkers

Obama administration goes to battle with Edmunds.com on Cash for Clunkers analysis, saying the program contributed heavily to last quarter's economic expansion.

In a blog post on whitehouse.gov, the administration argued that a report on Clunkers by automotive Web site Edmunds.com "doesn't withstand even basic scrutiny" and is based on "implausible assumptions."

On Wednesday, Edmunds.com released a study that argued Cash for Clunkers did not have a great impact on the auto industry. The report said that 690,000 new vehicles were sold under the program last summer, but that only 125,000 of them would not have been sold without the Clunkers rebates.
...
The administration argued that Edmunds' conclusions were incorrect because the study assumes that the market for cars that didn't qualify for Clunkers was unaffected by the program.

"In other words, all the other cars were being sold on Mars," said the administration.

[Chuckiechan]

Here's how the study was conducted:

Cash for Clunkers Results Finally In: Taxpayers Paid $24,000 per Vehicle Sold, Reports Edmunds.com

[Epidemic]

They explain it here

simply put. Cars were going to sell in August even with out cash for clunkers. so the question how many new sales occurred that would otherwise not have happened. The industry does sales projections when one looks as seasonally adjusted sales projections we see how many new sales were achieved. If the whitehouse was honest they would of course not only present the boost seen during the actual clunkers but they would also look at subsequent slow down from seasonaly adjusted values. also paying heed to the the slowdown seen just prior to the clunker program. My guess though is that they would come out with something on the order of 125,000 sales above projections. Or rather 24,000 dollars per new sale generated.

White house denounces the report and here is edmonds responds here