Car sales and research site Edmunds.com estimated today that each new car sold under the Cash for Clunkers government subsidy program cost the American taxpayers more than $24,000.
Edmunds estimated that 82 percent of vehicle sales during the program would have happened anyway (then or at some point in the near future), so the program only enticed about 18 percent of the buyers who participated in the program, which moved 690,000 new vehicles off the lots of very relieved dealers.
This means that the much-touted government program only got 125,000 new vehicles on the road than already would have gotten there without a government subsidy.
Edmunds' math goes like this: 690,000 vehicles sold with the $4,500 subsidy during the program divided by 125,000 new vehicles equals more than $24,000 for each new vehicle, or the amount ponied up by the American taxpayer.
So, if you bought a new vehicle during the program, go to each of your neighbors and thank them. Even though they didn't know they were helping you.
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