• Higher standards equals higher costs for vehicles.



    Are you tired of the elevated gas prices? Well due to the rising costs of gas and the effects on our environment the Obama Administration has taken the initiative to create new gas-mileage rules. However, this is causing a stir amongst auto companies, especially at the dealerships, because the higher fuel-economy standards could cost them sales and revenue. Higher Standards equals higher costs for new and used vehicles.


    All cars would be affected by these regulations; the repercussions would make cars more expensive, possibly making new cars un-affordable to millions of average families.

    A study commissioned by NADA (The National Automobile Dealers Association) found that the new fuel economy standards imposed by the government would increase the price of a car by almost $3,000. In today's market the cheapest new car of 2012 is the Nissan Versa Sedan, selling for $10,990. With the new regulations to become effective from 2017-2025, the cheapest a new car could cost would be about $15,700. According to the NADA study almost 4.2 million households would be unable to afford a new car.

    And don’t think “ohh can’t afford a new one, I’ll just buy a used car”. Used car prices would be affected too. Because of the supply and demand of used cars, the prices would eventually increase also.

    So I ask you, any ideas on what to do? Besides making your current car last as long as possible…
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