Weblog of Joe Ross, Trading Educator and Trader for over 5 Decades
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Auto Bailout

You are about to buy fuel-efficient cars. That’s right!

The president on March 30 directed the administration to speed up planned purchases of vehicles for the U.S. government’s fleet of cars.

The announcement Thursday includes the purchase of 2,500 hybrid sedans that will be ordered by April 15, the largest one-time purchase of hybrid vehicles for the government fleet in history, the White House said.

Swapping older federal cars for hybrids and fuel-efficient vehicles will reduce gasoline consumption by 1.3 million gallons per year and cut carbon dioxide emissions by 26 million pounds, the White House said.

Sounds pretty good doesn’t it? But let me tell you from first-hand experience, a few years from now when 2,500 hybrid batteries need replacement, we (the govt.) will have to shell out $4,000 apiece for them.

When I bought my Honda Hybrid, I was told that when the battery that drives the electrical part of the hybrid system wore out, I would be able to replace it for $600. Well, it wore out, and the replacement is now $4,000. So, where’s the savings?

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