The first round spent a billion dollars in a week - at $4,000/car, that’s equivalent to 250,000 cars, or roughly a sales rate of 13 million cars/year.
Since US sales have averaged 16.8 million cars/year over the last decade, it follows that 77% of all car sales (roughly 324,000 sales/week) in the first round were clunkers.
Ask yourself: “How many of those so-called clunkers would have been traded in without “Cash for Clunkers?”
Correct answer: most of them.
So now as Round Two (billion) gets underway, take Brian Douglas’s advice: “Benefit from our government's largesse. It's your tax money, might as well try to recoup some of it .... Then you can buy that foreclosed house with an $8,000 new buyers credit [to] park your new government-subsidized car.”
MORE: Pay no attention to the man behind the curtain. Via Don Surber.
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