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 traded in – 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 ¼ of one day's US consumption.
5 million barrels of
oil costs about $375 million dollars at $75 / bbl.
So, Congress just spent $3 billion to save $375 million.
How good a deal was that ?
But they're going to do a great job with health care, right?