Cash for Clunkers

Cash for Clunkers was "unveiled" today. Sounds like a good deal for clunkers drivers, huh? Rural Ways drives two clunkers: A 1993 Chevy pick-up with a 5.7 liter V8 and about 150,000 miles; plus, a 1995 Mercury Sable with a V6 and 180,000 miles. But these don't qualify as clunkers under the $1 billion dollar program. In order to qualify, the Chev needs to get less than 15 miles to the gallon. It could be close. If we drove it like most people drive (with two speeds: full-on and full-off) we'd get probably 12 or 13. But we like to use hyper-miling techniques to get 16 to 20(http://www.hypermiling.com/). For the car, we'd need to get less than 18 miles per gallon. Even with a V6, gentle driving can yield more than 30 mpg on the old Sable, so there is no way. The "environmental" reasoning behind this part of the program is that inefficient vehicles will be replaced by more efficient vehicles.

Of course, even if one of our vehicles did qualify, we would want to trade it in for a "used" car since that is where the long term value is. But, no, the money is only available to purchase a new vehicle. The "economic" reasoning behind this part of the program is that it doesn't help Detroit to have people buying used cars.

Obviously, the cash for clunkers program is a clunker. First, it makes little environmental sense to encourage people to buy new cars. Sure, they may be marginally more fuel efficient, but the manufacturing process requires incredible inputs of energy, nickel, steel, cadmium, lithium, plastic, and etc. This is totally un-accounted for and cannot possibly be justified when compared to the long-term maintenance and preservation of existing vehicles. Second, it makes little economic sense for most families to pay the premiums associated with new vehicles. A used vehicle would likely provide equal transportation for half the cost and a new vehicle would likely come with a usurious interest rate that can scarcely be afforded by the average family.