7 million car buyers to be pushed out of the market by new MPG laws
If the National Highway Traffic Safety Administration makes its proposed 2025 fuel economy standardsofficial, cars are going to be more expensive, and that’s going to shut millions of buyers out, argues theNational 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.
Oh, the unintended consequences of government interference.
