Cash For Clunkers

Crash of the Clunker (program)

Nearly 700,000 used cars were traded in encouraged by the US Government's offer - of an up to $4500 payment - to

anyone willing to part with a less fuel efficient vehicle for a more efficient model. 700,000 is a lot of people!

But let us break down exactly what these people have accomplished:

First of all, people had to trade in a vehicle - that did have value - so the $4500 wasn't a give away.

Second of all, some people still ponied up $15,000 - $20,000 to purchase the new vehicle.

Third of all, most people borrowed money and will have to pay interest on that money.

Fourth of all, what will these people have in 10 years?

Another Clunker!

Please, now compare this deal with that of purchasing a solar domestic water heater:

First of all, people do not have to trade in anything to get the 30% Federal Tax Credit.

Second of all, should one be eligible, Focus on Energy will Cash Back a Reward for up to 25% of the cost of the system.

Third of all, these 2 programs can be piggybacked together sometimes resulting in more than half off the cost.

Fourth of all, what does a purchaser of a solar domestic water heater have in 10 years?

10 years of free heat with 30 more to go!

Let us review the numbers:

Cash for Clunkers: @$24,500 - $4,500 = $20,000 cost. In ten years you have a car worth $5000.

$20,000 - $5,000 = $15,000 loss.

Solar Domestic Water Heater: @$10,000 - $5500 = $4500 cost. Ten years of asset appreciation and your system is worth $12,000 (estimate of what it will cost to install new in 10 years).

$12,000 - $4,500 = $7500 gain.

Plus, 10 years of free heat, higher value real estate holdings, goodwill amongst aquaintances, and a wonderful overall feeling you are doing your part to help lower our dependence on fossil fuels and contributing to a cleaner environment.