A new report from the National Automobile Dealers Association warns that as stricter fuel-economy regulations make cars more expensive, about seven million Americans will be “priced out” from buying a new car. The NADA study is based on government rules that will see Corporate Average FuelEconomy requirements climb to 54.5 mpg by 2025.
The dealer group points to early studies by the Environmental Protection Agency and National Highway Traffic Safety Administration that say new-car prices would rise about $3000 in order to meet the aggressive CAFE targets. This is because automakers would need to invest in new technologies, possibly including hybrids, to boost fuel economy.
However, the NADA study released today says that about seven million Americans would no longer be able to buy new cars if prices increased by that amount, in part because they wouldn’t qualify for the pricier vehicles. Many of those “priced out” of more fuel-efficient cars would be college students and young working families. As a result, those customers might be forced to continue driving older, less-efficient cars.
NADA Government Affairs Committee chairman Don Chalmers, who owns a Ford dealership in New Mexico, says that this means enacting higher CAFE regulations to reduce vehicle emissions will backfire.
“If my customers can’t buy what I’ve got to sell, there are no savings at the gas pump and there is no environmental benefit,” he said.
Then again, it might be difficult to obtain an efficient small car on the cheap far before 2025 rolls around. NADA is also warning that the prices of used cars will continue to rise. Because fewer new cars were sold since 2009, there are fewer high-quality used cars for sale now. NADA estimates that the country has 14 percent fewer used cars for sale under five years old today than it did in 2009. That, in turn, could make it more difficult for lower-income drivers to buy a vehicle.
NADA is warning that used car prices will spike over the next few weeks. Prices of used compact and midsize cars rose 2.6 percent from March to April, and have increased an average of 4.3 percent since the start of 2012, according to NADA data. That increase is expected to continue with prices peaking from April through May; by June, NADA predicts used car prices may decline and normalize.
Used car demand is rising because many customers want to buy more fuel-efficient cars in response to increasing gas prices, according to NADA. That is compounded by the fact that the supply of quality used cars is relatively small.
It’s looking like a tough proposition for buyers: the prices of new, more efficient cars will rise at the same time that the used-car market sees prices climb. Drivers looking to sell their used car, however, could stand to gain a lot by listing their car in the classifieds in the next few weeks.
Source: NADA

 

Well we all knew this would happen. But then again prices have been going up on cars for years regardless. I would blame that on automakers trying to make vehicles safer.

And I'm sure this thread could go the way of the politics section. Perhaps a mod should move it.

 

at some point, companies will realize that people just can't afford to buy a new car. That's why the used car market is doing so well.

As much as I love Ford, they're one of the culprits, they have some major pricetags on their cars. I'd love a new Focus, but they're actually kinda expensive for what they are. Same with the new Mustangs. Its near 40k for a well equipped GT!

 

True. I'd have loved high 30 mpg but I can't afford a Focus as a 2nd winter car, so Chrysler got my money. Can't afford a new F150 eco either so the old clunker has to be kept running.

 

I think that's where Toyota has hit it so well on the Prius cause its not super expensive. They're a dime a dozen out here in OR since they came out.

 

Yeah this is kind of a duhhhh answer. I wish more diesel were available. I'm still looking at TDI's. Plus keeping a good used car is worthwhile. Good thing new cars are much higher mileage ready.

 

I read a Jalopnik article about how the Prius C is already outselling in a month the years Volt sales. I was not dumbfounded by this I just thought, so Toyota is selling a better looking, fuel saving compact that is fairly budget friendly? Yeah, no **** they are going to sell like hotcakes. The Prius is no longer a car, it's a fad, an automotive culture all it's own. I hate the Prius, but it's genius.

 

I saw the Prius C at the auto show recently and it's ugly as hell, but 53 mpg city for under $20,000 - hell, even I would buy it.

Ford should really rethink their hybrids. They have a great hybrid system in a Fusion, but its pricey. Why not offer it in a Focus or even build a specific cheaper hybrid?

 

Ugly yes, but compared to the other Prii, it's a Ferrari. I agree about the hybrid systems. Too expensive and not accessible. If anyone were to do what Toyota has done with the Prius and make it as affordable. It would sell.

 

I think its to :gay: for 7 million people

 

The Prius or more fuel efficient cars overall?

 

overall

 

7 Million drivers effected??? How about like 100 million?

"A staggering 45 per cent of U.S. citizens live above the federal poverty threshold - but do not have enough money to cover their housing, food, healthcare and other basic expenses."


http://www.dailymail.co.uk/news/arti...ends-meet.html

 

Yeah but a staggering number of them have LCD HDTV's, cable, computers with internet and/or devices, cell phones, top shelf booze and beer, cigarettes, nice cars/new cars, etc., etc.

 

And $150 air jordans. Don't forget those.

 

Looks like prices will go up even more ...

 

Link?

 

Braindead?


Drive around your town with eyes open.

Or maybe you're in an affluent area and don't see what Oregon unemployment is like. But still have lots of nice cars and stuff and dang near everybody is zombiein' with their device in hand.

 

I'm not saying that some of the people that make 22k or less a year do not buy an ipod and cigarettes... It's just they do not buy new cars, and they certainly wont buy them if it's 4K more.

However, stereotyping is fun, let me try!

Being from Oregon and all, I bet you enjoy wearing your Nike's in the rain while on a walk to a micro brewery and/or strip club. From there you can make your way to a local Starbucks where you can do loads of meth and listen to Nirvana.

Yayyy stereotyping.

 

You forgot while collecting unemployment and food stamps. Except what you don't know is the devastation from your leader's economy has not affected the Willamette Valley that you describe above, like it has the vast rural timber, farm, fishing, and tourism economies of the rest of Oregon.

I get around my area and in sales you talk to a lot of people - incl business owners that deal with employees and interviewees day in and day out. Incl owning my own business and doing my own interviews/hiring for many years. And after a 30 year career, I know a lot of stuff about my area of N CA & S OR that you couldn't fathom on a silly report.

But you? Go ahead and get that taxpayer funded grant and enlist that government study to see if I'm right. Heck claim its a stimulous project like the other liars did. Either way, if truth, common sense, or a report bit you in the butt, you still wouldn't get it.




http://www.oregonlive.com/mapes/inde...gger_cont.html