EPA Making Cars Unaffordable by 2025?

Published by: Taylor Brown on 1st Feb 2012 | View all blogs by Taylor Brown
Observers of the automobile industry are warning that proposed fuel rules will make new cars and trucks too expensive for a large segment of American society in 2025. The National Automobile Dealers Association says that rules that have been proposed by the Environmental Protection Agency will move new vehicles out of the reach of up to seven million Americans.

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Forrest McConnell, NADA director, says that the association estimates that the rule to increase fuel economy MPG to 54 mpg by 2025 will increase vehicle prices by $3,200 and remove new vehicles costing $15,000 or less from the market entirely.  And keep in mind, these prices increases come with greater financing fees.  For instance, the interest paid on a 72 month auto loan at 7% APR would add another $728 to the vehicle's total price!

McConnell added, “America’s auto dealers support continuous improvements in fuel economy. Instead of fighting the consumer, NADA urges the administration to act in a manner that will leverage consumer demand, thereby maximizing fleet turnover and ensuring maximum feasible fuel economy increases.”

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