Study Says Car Prices Will Rise Along with Fuel Economy
Car dealers are concerned that new federal mpg standards will hurt vehicle sales.
But car dealers are concerned that the federal government’s proposed higher fuel-economy standards are going to hike prices and reduce sales of new and used vehicles. The Obama administration’s new gas-mileage rules under its Corporate Average Fuel Economy (CAFE) standard recommendations are designed to combat future higher fuel prices and alleviate environmental concerns.
A study commissioned by the National Automobile Dealers Association (NADA) found that the federal fuel-economy standards scheduled to be enacted from 2017 to 2025 will raise car prices by an average of $2,937 per vehicle, and also projects that the least-expensive new car will cost about $15,700. The NADA study also claims that the price hike will make a new car unaffordable for up to 4.2 million households. In a worst-case scenario, the average vehicle price will rise $12,349 and result in 14.9 million households not being able to afford that new-car smell.
The study says that used-car prices would also increase, and that drivers who are unable to afford a new car would be forced into the used-car market. And the surge in used-car demand would raise prices.
But the study doesn't consider the lifetime costs of operating the car -- and the overall fuel savings that counter the initial higher purchase price. It also doesn’t point out that the auto industry has fought previous CAFE standards that have raised average fuel economy, and those standards clearly aren’t hurting present-day vehicle sales. In fact, high-mpg vehicles are currently some of the most sought-after by car shoppers, and have become a profit center for dealers as car buyers load them with options.
[Source: USA Today]
I agree with you Frosty, allow the economy to figure itself out. Individuals will not continue to purchase gas guzzling vehicles if they cannot afford them and will figure a way around it. If that is by simply keeping their gas guzzler and using one of the many alternates you mentioned, or by trading it in, the economy needs to be allowed to work.
I grow tired of seeing individuals give up personal responsibility just to point the blame at someone else. "He allowed me to do this" should never be an excuse. You know damn well what you're doing before you get into it and it is time individuals take some personal responsibility again.
I hope all of the fools that voted this clown into office have awakened in time to vote him out during this election. I am not saying the Republican choices are much better this time around but Obama has to go before he puts this country into a situation that is too difficult to overcome.
We got "Change" all right, it just wasn't a good change.
The Obama Administration has proven itself to be the worst offender in the history of the country by creating more new and expensive regulations than any other administration in the history of this country. Consistent with burying us in the most debt in history. Is that the kind of "hope and change" we were promised? Heck no. Time for a regime change come November! A smaller, streamlined government will save us money in many ways.
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