Friday, August 7, 2009
Cash for Clunkers
They say it will last until Labor Day - the next $2 Billion that is. I'm not so sure about that. Just think the first billion was gone (in reality) in a day or two how do they think $2 billion is not already spent or will not be completely exhausted in 3 weeks? My advise to anyone thinking about using the program - don't think, but act now! It really is all about the math. How much money ($2B) divided by an average of $4000 received for a clunker = 500,000 vehicles. That seems like a great number, but now take that number and divide it by the number of dealerships in the whole United States lets say 15,000 (which is probably on the low side) and you come up with 33.3 cars sales per dealership. And they think it will last until Labor Day? The good news though is the program did what it said it would do - get Americans out to buy new more fuel efficient vehicles.