Cash for Clunkers works…for the Japanese.
Thursday, August 6th, 2009 at 8:07 am by pylornsI don’t know about you but I find this pretty funny. I mean, so sad that it is funny. So here is how it works:
1. The government takes 2 billion tax dollars from you (which really they’ve already taken so they are actually borrowing from the Chinese so that you can pay back at a later date.)
2. They give the money back to you in the form of $4500 bucks for your clunker of a car…that actually could be working fine.
3. You get to get a new car that is more fuel efficient – gets at least 20mpg on the hwy. Plus the special bonus of potentially having a car note that you didn’t have before.
4. The dealer takes your clunker and gives it to a junk yard that pours a chemical (liquid glass) into the engine – rendering it inoperable and then has 6 months to try to sell the spare parts like the transmission. Whatever the junkyard can’t sell it is required by this law to send the shredded metal remains of your car to China.
So how exactly is this benifiting the Japanese?
The Toyota Corolla is the top-selling vehicle on the list, followed by the Ford Focus, Honda Civic, Toyota Prius and the Toyota Camry. There is one SUV on the list, the Ford Escape, which also comes in a hybrid model that can get up to 32 miles per gallon. Six of the top-10 selling vehicles are built by foreign manufacturers, but most are built in North America.
That’s right all of the vehicles that get the best gas milage and/or reliable with the exception of the Ford Focus are Japanese cars. Granted toyota has plants here in the US – the money still goes back to the headquarters in Japan.
This plan orignally was supposed to help GM and Chrystler but hey, when was the last time they made a decent car anyway?

But wait! There's more!
As Billy Mays says said, “There’s so much more!”
So what was the other motivation behind this cash for clunkers deal that is supposed to be win-win for getting non-fuel effient cars off the road and helping out the American Car Dealers out? We wanted to help the enviroment by having cars that had better fuel standards and less emmisions on the road.
Some simple calculations suggest that the existing program will save only about 365,000 metric tons of CO2 a year. Compare that to 29,028,000,000 tons of CO2 emitted worldwide every year, according to U.S. government estimates.
To put 365,000 metric tons in perspective, China’s CO2 emissions have been increasing by an average of 644,000,000 metric tons each of the last four years, according to the U.S. Department of Energy. As of 2006, China was producing 6,017,690,000 tons of CO2, and the United States was producing 5,902,750,000 tons.
Put another way, if the world’s output represented the driving distance from San Francisco to New York, car-for-clunkers’ share of CO2 emissions is the distance from CBSNews.com’s downtown San Francisco bureau to the nearest subway station. Which is only a few blocks away.
Here’s how I arrived at that number: Assume the old vehicle was rated at 18 MPG, and the new one at 24 MPG, and that the average vehicle is driven 12,000 miles a year. The owner will save 166 gallons of gas annually, meaning 3,220 lbs of CO2 or 1.46 metric tons. Adding that up over 250,000 vehicles gives us a total of 365,000 metric tons of CO2 a year.
That’s right, your tax dollars at work.
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After having a $350 electric bill its time to start working on being more energy efficient. Some of you know that I purchased a house in Round Rock (suburb of Austin) to fix it up and resell it. Basically live in it for 2 years, thus making the taxes less when I sell it, and take my time to fix it and decide on what to do that improves the property value and what doesn’t improve the property value.





