Dealerships Fear Costly Fuel Efficiency Standards Will ‘Price Out Millions’ of Consumers
- Posted on February 15, 2012 at 9:40pm by
Becket Adams
- Print »
- Email »
American auto dealers are protesting new fuel economy rules that, they claim, would “price out millions of buyers from the new-car market,” thereby jeopardizing the supposed benefits of the environmental program as well as the auto industry’s chances of a comeback, Fox News reports.
The Obama administration has been campaigning almost nonstop for new fuel efficiency standards that officials claim “pay for themselves.” As the theory goes, consumers would pay more for a new vehicle, but the higher cost would be offset by what they’d save in fuel.
However, changes from two sets of fuel efficiency standards could add $3,000 to the price of a new car by 2025. And if consumers can’t qualify for a loan up front, the rest is fantasy cash, the National Automobile Dealers Association (NADA) argues. Consequently, consumers mindful of the stumbling economy will instead turn to “gas-guzzling” vehicles or put off buying a new car altogether — leaving the “fuel-efficient marvels” to collect dust on car lots all across the country.
“Where’s the environmental savings … if you can’t get the older cars off of the road?” NADA spokesman Bailey Wood said.
The NADA estimates that by 2025, 6.8 million drivers will no longer qualify for a new-car loan if the proposed fuel efficiency standards take effect, Fox reports.
“The objections were filed Monday as the federal government closed its comment period for the proposed regulations,” writes Fox’s Judson Berger. “The next step is to review the comments and finalize the rule. The government already mandated an average fuel economy of 35.5 miles per gallon by 2016.”
The latest proposal aims to achieve a 54.5 miles-per-gallon standard by 2025.
“The Obama administration brought some of the biggest automakers in the country on board with the goal last year before rolling out the new target. And they’ve got plenty of support from advocacy groups,” Berger writes.
“The Consumers Union sided with the administration, submitting comments Monday claiming the changes would save most buyers money ‘in the very first month of ownership,’” he adds.
However, auto dealers are hoping that they can delay the the process until they’ve had time to properly evaluate the financial impact the changes will have on consumers.
“Fuel economy standards can’t just be some number picked out of thin air. They have to be based on consumer demand,” Wood said. “If dealers can’t sell these vehicles, then you defeat any other benefits you were seeking.”
The NADA estimate is based on the number of drivers who would be “priced out” because the new efficiency rules would add approximately $3,000 to the price of a new vehicle by 2025.
“That figure combines the administration’s cost estimate for fuel economy standards from 2012-2025,” Berger writes. “The NADA, though, says that estimate doesn’t factor in certain elements like advertising, and pegged the actual increase at more like $5,000.”
But even disregarding the actual price, the group believes that literally millions of consumers would still be “priced out” by the new efficiency standards.
“For most households, a light-duty car or truck is the most expensive consumer purchase they make,” the NADA said in a statement to the Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA), adding that most consumers have to borrow in order to purchase a car.
During the loan approval process, the group said, “it matters not whether the new vehicles in question offer improved fuel economy performance characteristics compared to the transportation options currently being used by prospective purchasers. … All that matters is whether prospective purchasers are creditworthy.”
The National Highway Traffic Safety Administration
Nevertheless, environmental and consumer groups are gushing over the new fuel economy standards.
The Consumers Union submitted its comments on Monday, claiming – unsurprisingly — that the fuel savings from “efficient vehicles” far outweigh the increase in price.
“The proposed target is reasonable and provides excellent value for consumers,” the group said.
The Obama administration, in its roll-out last year, said the 2017-2025 changes would add about $2,000 to the price of a new vehicle by 2025, Fox reports. The administration believe that consumers would in turn save anywhere between $5,200 and $6,600 on gas over the life of the vehicle.
“The discounted fuel savings will offset the higher vehicle cost in less than 4 years, and fuel savings will continue for as long as the consumer owns the vehicle,” the announcement said.
Although auto manufacturers are mostly supportive of the changes, they continue to express concerns about consumer response.
A statement from Mitch Bainwol, head of the Alliance of Automobile Manufacturers, said the “ultimate question” is whether consumers would pay more for the new cars.
“This unprecedented effort and expense will further our country’s energy and environmental goals, but only if consumers purchase the more fuel-efficient and climate-friendly, but more expensive, vehicle technologies,” Bainwol said.
In its comments to the EPA, the Alliance asked that the government allow for a review of the new standards halfway through the 2017-2025 period — and to allow them to adjust as needed.
However, the NADA was a little more blunt with its request: stop trying to plan fuel efficiency so far in advance.
“Why is the Obama administration setting fuel economy standards as far as 14 years in the future?” Wood asked. “In 14 years, my 2-year-old will be driving. How can you adequately determine what consumer demand (will be), let alone what people will be driving, in 2025?”
He also said his group wants the EPA out of the process, leaving the decision to NHTSA.
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 679 Comments
‘Jumah at the DNC’ Speaker: ‘Muslims Visited America Prior to Columbus’ & ‘It Was a Muslim’ Who Guided Him to the ‘New World’ 530 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 424 Comments
Obama: RNC Like Watching ‘Black-and-White TV’ Because Romney ‘Did Not Offer a Single New Idea’ 373 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 329 Comments
Faith
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 278 Comments- Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More
- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 285 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 168 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 148 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 300 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 278 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (71)
wntsmallgov
Posted on February 16, 2012 at 5:06amAmen sir amen
Report Post »wntsmallgov
Posted on February 16, 2012 at 5:04amthinking about further — the new cars are already outside most peoples budgets why wait for 2025
Report Post »Detroit paperboy
Posted on February 16, 2012 at 8:38amDoes the Government ever get anything Right ? Ever…..
Report Post »TomFerrari
Posted on February 16, 2012 at 8:53am@detroit…
Rarely since 1791.
The key (pun intended) for my household is, we do not finance vehicles.
Report Post »We keep the old one and sock away money as though we were making payments.
That money EARNS interest. (as opposed to PAYING interest on a loan)
Then when we have enough money saved, we still don’t buy. We wait as long as possible before buying.
When we DO buy, we buy USED and let others take the depreciation in value on the brand new truck or car. When the price has dropped, a few years later, we buy from them. We watch ads and go look at many vehicles prior to finding just the right one. We just bought a 2006 F150 for $5,000. It needed 2 new tires ($300). So, we paid $5,300 cash for a 5 yr old truck with lots of good miles remaining!
enzomedici
Posted on February 16, 2012 at 9:45am54 mph by 2025 and the car manufacturers are whining? Gimme a break. Car manufacturers could make cars get 100mph right now if they wanted to.
Walkabout
Posted on February 16, 2012 at 12:19pmenzomedici
Prove it! You can‘t You don’t have the scientific / mathematical skills to do so.
If a company from Japanese, South Korean, Chinese, Russian, German or some other country designed & patented a car. They would be richer the Apple. They would have humungous market share. That is why I am calling BS.
You prove one thing. the less you know the easier it think it is to do something.
You know oh so little.
Report Post »Razorhunters
Posted on February 16, 2012 at 4:41amconvert vehicle to propane and propane accessories…
Report Post »@500$ to @1000$.
Karama
Posted on February 16, 2012 at 3:57amI can’t afford most new cars at the price they are now. So what makes them think I will be anymore inclined to buy when they tack on 3k more?
Report Post »steelpanther
Posted on February 16, 2012 at 11:20amI think that’s the point. They want to force you to bike or walk. What better way then to make cars cost more then the average person can buy? Personally I don’t want to buy a car newer then 2009 just from the “safety features”.
If they want to get more miles per gallon, dump the crap emissions standards. Fuel mileage has gone down every time those standards have went up and I hate to break this to them, but you can only burn something once. Shoving exaust back into the engine to burn it again does nothing but screw the owner over. So why not dump the emissions crap and burn half the gas and put out half the emissions!
Report Post »TheGhost
Posted on February 16, 2012 at 11:12pmreply to steelpanther …
you’re close to what Obama wants you to do, but not close enough. what he really wants is you to move to the city where you won’t need a car, then you can take public transportation.
Report Post »Randyrocker
Posted on February 16, 2012 at 1:44amWith the price of gas going up, no one will be going anywhere. The way things are now going (backwards) who needs or even wants to buy a new expensive car anyways, except to impress or out of envy or one’s ups-man-ship, all sad traits of a decaying economic society thanks to Obama and his ilk. Cars are a delivery system to sell gas and oil and payoff a coercive police force who will attempt to do anything to rob you out of your hard earned money and ruin your motoring experience. Cheaper in the long run to either rent when need be, or take a cab.
Report Post »wntsmallgov
Posted on February 16, 2012 at 1:41amthere will be no savings, the gas prices will keep going up and no matter what car is on the road it will cost you 100% more.
Report Post »dnewton
Posted on February 16, 2012 at 4:08pmYou are right. The cost pressure will come from the cost of production to the taxation. More fuel efficient cars means less fuel related taxes for roads. The less gas you buy, the less tax you pay but the deterioration due to use and aging goes on at about the same rate, no matter what the fuel efficiency is. Obama is threatening to eliminate subsidies to oil companies and give them to green energy companies. I am not sure what subsidies he is talking about but it probably means that the cost of looking for oil will no longer be deductible. There are depreciation schedules for oil producing equipment. Maybe that is what he means as a subsidy.
Report Post »Truth Wins Every Time
Posted on February 16, 2012 at 1:29amVery simple solution from Odumbo…..
All older vehicles will become illegal to own or drive. Evryone MUST buy one of the new ones.
Odumbo…you want my P/U? Come and try to take it. You personallly try
Report Post »WiseFox
Posted on February 16, 2012 at 1:07amWhen?
Report Post »WiseFox
Posted on February 16, 2012 at 1:06amWell, I guess GM and all of Unions will expect handouts from the government, but there won’t be any to go around. So the only thing left for them to do is go out of business and loose jobs. GM should have been allowed to go out of business when all of this happened, and maybe we would not be in such bad shape now, but that is old business. I wonder if all of the union people will be picketing the people who screwed things up. What goes around, comes around.
Report Post »Lawrence7
Posted on February 16, 2012 at 12:21amIt’s already priced me out of the market. It’s cheaper for me to fix up my old clunkers (actually restore them to a point) and I have a better/easier to maintain car than if I bought the expensive pieces of tin they sell as new now-a-days. Cost per mile is cheaper to fix up my old car, and drive with lesser fuel mileage and much cheaper insurance.
Report Post »netmail
Posted on February 16, 2012 at 12:58amAs it is, I wonder who is buying all the new cars today?? It’s probably the guberment.
Report Post »marion
Posted on February 16, 2012 at 12:20amWhat. Who ever thought the Progressives, communists, socialists, marxists, Obamists, all of them, ever thought they could control the population when people were able to move from place to place relatively easy. Standards are designed to set limits, in this case ownership. When gas hits $5 a gallon it will slow everyone down, everything will cost more, less jobs, yeah, this guy needs another four years.
Sorry, it is just time to get this Progressive pOs out of here before the nation is worthless.
Report Post »DividedWeFail
Posted on February 16, 2012 at 12:07amObama wants everyone living in the city taking the bus and trains.
Meanwhile, the rich get to live on 5 acres or more and get paid for not growing plants they had no intention of planting anyway. Either that or get paid to raise Llamas and of course they get a huge a tax break for raising racing horses even if they lose money year after year whereas a person raising pure breed dogs who lost money year after year would be disallowed a tax break and his raising pure bred dogs deemed a “hobby” not a business.
Report Post »babylonvi
Posted on February 15, 2012 at 11:32pmSo “The administration believe that consumers would in turn save anywhere between $5,200 and $6,600 on gas over the life of the vehicle.” That may very well be true, remember Prince Barry said during the campaign that “gas prices would reach $8/gal.“ Great Republican campaign ad line ”Re-elect Obama and you won’t have to worry about gas prices, you won’t be able to afford the car.” I believe any Republican could get elected with the promise to roll back DHS, TSA, EPA, FDA, IRS and hold federal employment at 2008 levels.
Report Post »pamela kay
Posted on February 16, 2012 at 12:27amBABYLONVI, Love your comment. I don‘t understand why some republicans are not going after BHO more on some of these issues and just don’t lay it all out for the people in a simple way so people might finally get it. When people are effected in their little comfort zones they might finally wake up.
Report Post »lukerw
Posted on February 15, 2012 at 11:31pmIt is amazing… but everything that the Proressives do… increases LIMIT… resulting in a Return to the Past… destroying the 20th Century accomplishments!
Report Post »Glock31
Posted on February 15, 2012 at 11:01pmI would set up drilling rigs on the white house lawn lol
Report Post »confederacyofdunces
Posted on February 15, 2012 at 10:51pmI have the solution! The government will start a new quasi governmental agency that will lend money for cars not base upon credit worthiness but upon need. An inner city pregnant girl can apply for a new escalade with 21″ rims because she needs to get to planned parenthood. The more income you have the smaller your loan can be. Grants will be issued based upon the size of your minority group.
Report Post »Pretty good Eh? I could be on the Prezez Cabinet as minister of low riders.
georgiavietvet
Posted on February 15, 2012 at 10:48pmthis is exactly what obammy and his ilk want as far as they are concerned, we will be back to riding horses or walking or riding bycicles. without rapid means of transport. its extremely hard to get a rebellion going without rapid means of getting to the fight. if gas goes up,as expected, this summer, it will make it more difficult for us to get to where ever the fight is against obama. you may think im crazy, but there is a fight coming this summer. ows will start it and it will be up to us to finish it or live under obammies tyranny. its just that simple………………….
Report Post »country_hick
Posted on February 15, 2012 at 10:47pmDon’t you just love how this Administration is mandating scientific advancement?
Of course one way to increase fuel efficiency is to cut the weight of the vehicles which makes them less safe. Why does the administration hate union members, children, grand parents and small animals by mandating less safe vehicles?
Report Post »country_hick
Posted on February 15, 2012 at 10:46pmDon’t you just love how this Administration is mandating scientific advancement?
Of course one way to increase fuel efficiency is to cut the weight of the vehicles which makes them less safe. Why does Mr. Obama hate union members, children, grand parents and small animals by mandating less safe vehicles?
Report Post »Blazer123
Posted on February 15, 2012 at 10:32pmYes these arbitrary numbers are dumb and Obama sucks. Didn’t W Bush push the same type of nonsense? Meet the new boss, same as the old boss.
Ron Paul 2012
Report Post »wifezilla
Posted on February 15, 2012 at 10:25pmI‘ve been priced out of the new car market my entire adult life and I’m 48. What this will do is price me and others like me out of the USED car market too. I guess it’s a good thing I started biking again :P
Report Post »jhaydeng
Posted on February 15, 2012 at 10:32pmWhen will it end! Where are the Republican and Conservatives in Washington on this? I wonder how I will look in a beret? Ugh!!!
Report Post »valleyfever
Posted on February 15, 2012 at 10:19pmThe govt will argue that electric cars will meet those standards. Hope they remembered to figure in how that electricity is made. The EPA is out of control.
Report Post »Darmok and Jalad at Tanagra
Posted on February 15, 2012 at 10:26pmElectricity comes from Unicorn Farts and Pixie Dust. And as long as we believe in magic, we will have lots of electricity.
Report Post »Baddoggy
Posted on February 15, 2012 at 10:28pmIt’s hilarious that electric cars contribute MORE to pollution that a gas powered car. And then what do you do with the battery when it dies? Maybe throw them over the fence at the White House?
Kinda like that mercury filled light bulb..IDIOTS ae running the Country!!!
Report Post »teamarcheson
Posted on February 15, 2012 at 10:33pmDo Not Expect The GOP To Help YOU. The GOP Helped Write The Orders.
The whole plan is to take you cars away from you. Only the poor will get free cars and the rich, well the rich. The American Middle Class must be destroyed for ever so it can never rise up again in the future to stop the Evil. Fight now or die now.
Report Post »USAMEDIC3008
Posted on February 15, 2012 at 10:33pmNatural gas has been comming out
Report Post »my a$$ for years, Please dont tell the EPA
CatB
Posted on February 15, 2012 at 10:16pmI plan on keeping my current vehicle … until the wheels fall off. I don’t like the way citizens are being manipulated by the White House OR the Unions.
Report Post »TheObamanation
Posted on February 15, 2012 at 10:15pm:: Fuel economy standards can’t just be some number picked out of thin air :: … the whole environmental scam is just numbers picked out of thin air … just ask manbearpig
Report Post »2theADDLED
Posted on February 15, 2012 at 11:50pmThe Obama administration has been campaigning almost nonstop for new fuel efficiency standards that officials claim “pay for themselves.” As the theory goes, consumers would pay more for a new vehicle, but the higher cost would be offset by what they’d save in fuel.
It is just that a theory unless they have hard proof it will remain just a theory and we all know about Obamas theories it looks good on paper so it must work. Lets try a experiment first mandate it to all union workers first you know like Obamacare.
Report Post »I.Gaspar
Posted on February 15, 2012 at 10:14pmIf obama gets reelected in November, the price of a car won’t matter by 2025.
Report Post »Only the elite ruling class will be able to buy new cars; the rest of the people will be reliving Havana in the 70‘s and 80’s, with old vehicles kept together with duct tape and scavenged parts and running on wesson oil.
It turns my stomach to see the tools posting here attacking conservatives, totally convinced that the utopia they seem to think will come through marxism will take care of them…as if they matter.
It‘s gonna get ugly if we don’t vote all of the thugs out of office.