The Headache Continues
A few days ago I wrote a blog called Ow! My Head Hurts! about how if the Edumunds.com figures were right, the tens of thousands of dollars per additional car sold under the Cash for Clunkers program seemed like a collosal waste.
A few Fools, perhaps rightfully so, questioned the Edmunds.com data, one in particular saying that, "Edmunds is taking a hot political issue that is receiving all sorts of press, making some weak assumptions, and using the headlines that it is generating from this statement for its own gain." Click here for the original post.
I still can't figure out what Edmunds' "own gain" would be other than perhaps some publicity which draws people to their website (which to me seems hardly worth the trouble, but I digress). But let's put Edmunds aside for a moment.
How about our friends at the Associated Press?
The most common deals under the government's $3 billion Cash for Clunkers program, aimed at putting more fuel-efficient cars on the road, replaced old Ford or Chevrolet pickups with new ones that got only marginally better gas mileage, according to an analysis of new federal data by The Associated Press.
The article continues:
The single most common swap — which occurred more than 8,200 times — involved Ford F150 pickup owners who took advantage of a government rebate to trade their old trucks for new Ford F150s. They were 17 times more likely to buy a new F150 than, say, a Toyota Prius. The fuel economy for the new trucks ranged from 15 mpg to 17 mpg based on engine size and other factors, an improvement of just 1 mpg to 3 mpg over the clunkers.
As I blogged back in August, I didn't much the idea of the expansion of Cash for Clunkers then, and I like it even less now.
Yes, the average gas mileage for new cars sold under the program was about 9 miles per gallon greater than that of the average clunker traded-in, but c'mon, does anyone really think this program was worth the $3 Billion pricetag?
Now if you'll excuse me a minute, I think I'd better go fetch those few tablets of ibuprophen that I have stashed in my desk somewhere.
Russell (a.k.a. TMFEldrehad)