ANN ARBOR, Mich. (AP) -- Big cars and trucks are out. Smaller ones that offer more for your dollar are in. And many drivers will hang onto the new cars they buy longer.
We've seen some of this before -- in the 1970s. But there's reason to believe that this time, American car-buying habits have changed forever.
Scarred by the worst financial crisis since the 1930s and still leery of high gas prices, people are walking into showrooms intent on spending less. The trend is strongest among baby boomers, who are 44 to 63 years old and make up a quarter of the population, dealers and industry analysts say.
A generation ago, boomers drove the economy out of the second-worst recession since World War II. After the downturn ended in 1982, they went on a buying spree throughout the '80s; for many, free-spending became a way of life that didn't end until last year. But their investments and home values have taken a hit. And with time running out until retirement, economizing on the second-biggest purchase most people make has become common. . . .
Ford F-Series: 36,327 Toyota Camry: 33,974
Honda Civic: 30,037 Honda Accord: 29,774
Toyota Corolla: 29,593 Chevy Silverado: 27,617
Ford Focus: 21,830 Ford Escape: 20,241
Nissan Altima: 19,252
Toyota Prius: 19,173
I guess I must be on the wrong page…
A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
So, the average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
They claim 700,000 vehicles – so that's 224 million gallons / year.
That equates to a bit over 5 million barrels of oil.
5 million barrels of oil is about ¼ of one day's US consumption.
And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.
So, we all -- you know, us taxpayers -- contributed to spending $3 billion to save $350 million.
How good a deal was that ???
The cash for clunkers should have only been able to be used if you were buying a domestically produced car, you know the ones that Americans build, get paychecks for building, and spend their money in the US hopefully buying other things that were produced in the USA.
I should not have to subsidize buying an import, that helps factory workers in Korea have more money to buy things made in Korea.
And by your reasoning, pdboildermaker, there would be no incentive to purchase a smart sold and service by your local smart center, distributed by SmartUSA and supported with American parts for some percentage of the overall build.
It's much less obvious these days how much American content is in foreign cars and how much foreign content is in cars that are labeled as American.
The folks in Hambach France and perhaps Germany may have been helped out a little by this stimulus. Were American car companies locked out when countries like Germany had a similar automotive stimulus?
The realities are rarely clear in a simplified, protectionist viewpoint. American companies can benefit from foreign vehicle sales in many ways as well.
The cash for clunkers should have only been able to be used if you were buying a domestically produced car, you know the ones that Americans build, get paychecks for building, and spend their money in the US hopefully buying other things that were produced in the USA.
I should not have to subsidize buying an import, that helps factory workers in Korea have more money to buy things made in Korea.
I have two issues with this argument:
1. you didn't HAVE to subsidize any import, you got to choose which car you wanted to buy.
2. Many 'Imports' involve more Americans building them and the parts for them than 'American made cars'. This global economy makes it tougher for the purchaser to make an informed decision.
and finally my own opinion ( for what it is worth ) is that limiting the purchase to only 'Domestics' is another flavor of protectionism which does nothing but lower the quality of the product ( because their is less competition ) and raise prices ( again, because of less competition ).
I am very happy to hear of GM's latest efforts to compare their products head to head with the completion. GM thinks their vehicles will stand up to the comparison.
We win by getting better products at lower prices now and the future when the competition responds.
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