Government’s New Fuel Efficiency Standards Could Drive Millions Out Of The Auto Market

Car-for-Sale

The government’s efforts to impose efficiency standards on the auto market will probably mean a big economic hit as rising prices for cars drive buyers out of the market:

If the National Highway Traffic Safety Administration makes its proposed 2025 fuel economy standards official, cars are going to be more expensive, and that’s going to shut millions of buyers out, argues the National Automobile Dealers Association. “If the price of a vehicle goes up by the government estimate of almost $3,000,” says David Wagner, an analyst for the NADA Used Car Guide, “millions of people will no longer be able to finance a new vehicle.” The proposed standard is aiming for an average of 54.5 mpg for both cars and trucks by 2025, and is predicted to add $2,000 to the cost of a vehicle. Add to that the $1,000 or so that’s going to be added to the price of vehicles as the current fuel economy requirements phase-in between now and 2016, and the $30,000 average price of a new car rises to the point where lower income buyers may not be able to qualify for financing.

Hybrid and electric cars, heavily subsidized and promoted by the government, are already a bad deal for consumers requiring decades of ownership or fuel prices that are double to triple what they are now to make them economically sensible.

This, perhaps, is why most hybrid owners aren’t repeat customers.

What the government proposes doing by imposing these efficiency standards on all vehicles is create a lot more bad deals for consumers.

But why does the government need to mandate efficiency? Most of us would love to buy a car that gets 54mpg, assuming it meets our other standards in terms of safety, performance, cost, etc. Nobody likes paying more for gasoline than they would have to otherwise.

When 54mpg makes economic sense, the market will embrace it. There’s no need for the government to ram it down our throats.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • mikemc1970

    That’s Obamas plan. A population on foot and dependent on government assistance for mobility is much easier to control.

  • Neiman

    There is a hot market in used cars, except in California where they keep increasing the standards to pass SMOG tests and making those cars impossible to smog.

  • mickey_moussaoui

    I’ll keep my SUV running, thankyou

  • http://twitter.com/MagnifiedView Janet Arrigo

    Kudos Mr. Port: Outstanding expose:

    Should our great leader get asecond term we will all be following a goat around our backyards as in the “developing” world.

    He will being a communist revolution to a neighborhood near you

    http://www.magnifiedview.com/2011/10/18/occupying-wall-street-style-uprisings-and-the-arab-spring-revolution
    Thanks Mr. Port – Right on – WRITE ON!
    Respectfully, [email protected]
    @magnifiedview:disqus 
    P.S. “May you live in interesting times.”  Ancient Chinese curse.

  • headward

    Soon only the 1% will be able to drive with these regulations.

  • 2hotel9

     “Government’s New Fuel Efficiency Standards Could Drive Millions Out Of The Auto Market”

    Which is exactly what Democrats have been pushing since the 1920s. Only “special” people are supposed to own “motor cars”, not low grade pieces of sh*t like American citizens.

    • borborygmi

      Are you one of those special people or didn’t you apply yourself so you too could afford a nice new shiny fuel efficient automobiles, making you a low grade etc etc

      • 2hotel9

         Low grade piece of sh*t, thats you to a T.

      • mickey_moussaoui

        My Expedition is out of your price group, son

        • 2hotel9

           You can bet your bippy boob can’t afford my 4Runner, Jeep or Ford 1ton dump. And she damned sure could not afford the insurance or fuel for them.

          • two_amber_lamps

            “She”…?  I think that’s an “it”….

    • two_amber_lamps

       That’s because Henry Ford was a KKK-apitalist looking to financially enslave the proletariat.  Why would the working class schlubs want to leave our monumental cities when everything they want is brought to them?  The aristocracy of the Middle Ages had it right, keep the serfs attached to the land and taxed…  pay tribute to the king and remember to kneel when King Obama walks by!

      How’s that hope and change coming for ya lefties?  You’ll be the first to be enslaved.

  • sbark

    Is freedom to travel among and thru state lines basically our last unregulated freedom left?

    Fuel standards and other govt regs are a big reason GM and Chrysler went broke…….with the Union burden the icing on the cake.   

      And then of course more govt came in to “save them” after creating the problem in the 1st place………………….and the sheeples think Obma’ saving them is a big feather in his hat to this day yet…

    • two_amber_lamps

      Won’t it be funny if/when they decide the interstate commerce clause also shall control interstate travel?

      If they can use the interstate commerce clause to force you to buy a product/service, why can’t they use same said law to monitor/regulate travel amongst the states? 

  • http://enigma-cypher.blogspot.com/ Enigma_Cypher

    The federal government does not have the power to “mandate” fuel efficiency. Any member of congress who supports such a thing ought to be fired for breaking their oath of office.

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