Figured I would share some fun stuff I figured out in regards to this government program that *knocks on wood* ACTUALLY WORKED ^^
First, we know the original bill called for $1 Billion spending limit.
Assume, on average, that it is $4,000 per car participating in the program.
That means 250,000 cars participated, since the money has run out.
The least beneficial trade in that still qualifies for the program is a 18mpg car for a 22 mpg car. Let's see what happens with this least beneficial trade in.
The average driver travels 15,000 miles per year.
At 18mpg, that's 833 gallons of gas per year. At 22mpg, that's only 682 gallons of gas per year. A savings of 151 gallons of gas per year.
Since this is the least beneficial way to go, we know that all 250,000 cars must AT LEAST save 151 gallons of gas per year. That's 37,750,000 gallons of gas per year saved minimally!
If you convert that into money spent at the pump, we are hit for a loss; it only means we saved (assuming $2.50 per gallon cost to the consumer) $94,375,000 and spent one billion. I, however, look at the ecological side of this and see that money as well spent towards preserving our limited oil supplies.
What's more exciting is the talk of expanding this program to be three billion spent, meaning over 100,000,000 gallons of gas saved ^^
Please comment with any insights you've made as well. Cheers!