August 27, 2009

Cash for Clunkers

CNN reported the following headline this morning:

If you were one of the nearly 700,000 people who were able to cash in on the Cash for Clunkers program, congratulations, you probably got a good deal. On the other hand, if you bought without a clunker in the last month you've overpaid.

Ok, so there were 700,000 people that got cash for there clunker, and there was $3 billion budget. Simple math shows that the average payout per car owner was $4,285.71. This suggests that a lot of consumers qualified for the higher payout. I am a little surprise by this since I thought that the formula was set up to the lower payout option.

There are currently 304,059,724 people living in the United States today. This means that roughly 4% of the population got the benefit of using cash for clunkers.



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