wastes $24,000 per car on clash for clunkers

wastes $24,000 per car on clash for clunkers
The Obama administration and the CEO of the nation's largest car dealership chain are taking aim at Edmunds.com's finding that the true cost of the "Cash for Clunkers" program involved a $24,000-per-vehicle subsidy by taxpayers. Edmunds is firing back.

The White House called the analysis "faulty" on the blog on its web site, saying it looks like Edmunds examined car sales on Mars and not on Earth.

Edmunds is firing back. "Apparently, the $24,000 figure caught many by surprise. It shouldn’t have. The truth is that consumer incentive programs are always hugely expensive when calculated by incremental sales – always in the tens of thousands of dollars. Cash for Clunkers was no exception" the car research web site said in a statement.

it also disputed the sales spillover effect of the promotion, saying there is little evidence to support the claim. "It does, after all, seem a bit odd that masses of consumers would elect to buy a vehicle because of a program for which they don’t qualify," Edmunds wrote.

Photo of clunker sign outside of Suburu dealership in Oregon City, Ore., last summer by Rick Bowmer/AP