A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year. So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles so that’s 224 million gallons/year.
That equates to a bit over 5 million barrels of oil.
5 million barrels of oil is about of one day’s US consumption.
And, 5 million barrels of oil costs about $350million dollars at $75/bbl.
So, we all contributed to spending $3 billion to save $350 million.
How good a deal was that?
They’ll probably do a great job with health care though!