Thursday, October 29, 2009

Cash for Clunkers cost taxpayers $24,000 per real sale

The Cash for Clunkers program provided federal subsidies of up to $4500 for those car owners willing to buy a more fuel-efficient vehicle in exchange for certain classes of gas guzzlers. In all, the C4C program generated over 690,000 sales in the few weeks that it ran, with an average subsidy of $4,348 per sale. How many of these, though, would have bought a new car in the near future anyway? According to a new study by Edmonds, an industry analyst, only 125,000 of these sales would have not been made without C4C — which brings the subsidy to about $24,000 per actual successful incentive (via Snapped Shot):READ MORE...

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