Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: RetiredNow who wrote (308019)	10/31/2006 1:43:20 PM
From: TimF	Read Replies (1) of 1572099

1 - Oil isn't just used for vehicles. 2 - Your ignoring interest on the government spending to subsidize the cars. 3- The flex-fuel hybrids might easily cost more than $30K. The average price for a new car now is over $28k. 4 - Your ignoring the cost of the flex fuel. Your calculating a 75% reduction in oil use, but the cars are "flex fuel" burning some mix. If they are burning ethanol or biodiesel or whatever you have to count the cost of that fuel, which may be more than the cost of gasoline. 5 - If cars become more fuel efficient or otherwise cheaper to operate you may get an increase in miles driven, esp. if your subsidizing the cost of the car (so more people might have cars). 6- Would your subsidy reply only to people who turn in an old car, or would you give it to everyone buying a new car? If you give it to everyone buying a new car you will probably have to replace more vehicles than you anticipate. Demand for cars is growing, and would grow more if you subsidize them. Also if you provide subsidies for new cars people may junk their old cars earlier. This helps in terms of reducing gasoline use, but causes you to have to shell out money quicker, and pay more interest.

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