The average fuel economy improvement on the trades is stated as being 66% (from 15-25mpg). I personally had an improvement of about 127% (going from 18mpg to 41mpg). Doing about 20k miles/yr, I will save about 870 gal of fuel per year at a cost of about $2300 at current prices. All raise their hands who think that gas prices are not going up in future ?
My clunker was a good car that served us well, but it had close to 160k miles on it, a KBB value of about $3k, had an expensive ZF transmission that was starting to act up and it needed a timing belt change (major service).
There are plenty people out there who are still employed, who are still bringing home decent pay, but who have been holding back on buying a new car. I think this program is the first thing the government has done since the start of the financial crisis that has had ANY tangible benefit for taxpayers.
Lets remember that the republicans gave the banks the $1 trillion, after being in denial for years. Bush had taken just as much tax money off me as anyone else, but republicans feel that it is somehow justified if you are hitting shacks in the desert with stealth bombers @ $100k/hour. But spending is not justified if one is trying to ween the population off their gasoline addiction ?
People who take advantage of this program and buy a vehicle that is downsized, economical and FUN are unlikely to return to their old ways. And all those who complain about not buying american: The fact is that FORD, GM and Chrysler sell fuel efficient vehicles in other countries, just not here. If people buy products from competitors, and I might add, first world competitors - not chinese sweatshops - they are sending a message to the big 3 that they had better not ignore.
As of this summer, you can get a turbo diesel passenger vehicle from VW, Audi, BMW, and Mercedes. Chrysler dropped the ridiculously overpriced Grand Cherokee with the mercedes engine and the others have nothing. Shame on them, when manufacturers in foreign countries have to build vehicles to meet more stringent emission regulations than their own and start selling them here in the US when the Big 3 have nothing to offer their own people.
Do you honestly think that the cash for clunkers is going to make any difference in weening "the population off their gasoline addiction"?
The amount of fuel saved will be a drop in the ocean.