Car prices are on the rise. I’ve often noted that when the leftists want to end something, they do not ban it outright. That would be unpopular. But, if they make it more and more expensive, they can still say you can do it- you just won’t be able to afford it. I wrote about this back in 2009.
Now, enter the auto industry. For decades, the Fed has made cars more expensive via safety, emissions, and fuel economy requirements. The safety regulations make the cars heavier, making mileage a problem, the emissions regulations made engine compression ratios go down, which also ruins mileage. Of course, you then have to do a ton of R&D, and add a bunch of additional equipment to make the cars meet all of the regulations. Then end result has been cars that are far more expensive that they need to be. Also, they have consistently prevented us from increasing domestic oil production, leaving us at the whim of foreign powers, and driving consumer costs through the roof. When you look at all of these in their totality, you can guess that, “Gee, seems they want to make it mighty inconvenient to own and operate at car!”
The average price of a new car in 2012 was $30,500. Wondering why? One contributing factor is the new Corporate Average Fuel Economy (CAFE) standards.
All models from a single manufacturer must reach an average of 35.3 miles per gallon (mpg) by 2016 and 54.5 mpg by 2025. The current average is 29 mpg. We already knew federal fuel efficiency standards don’t reduce global warming, considering that not even cap and trade would have. We knew they don’t reduce dependence on foreign oil. And now, if we didn’t know it before, we know that they don’t help make cars affordable.
By the government’s own account, the stringent new CAFE standards will increase the average cost of a new car by $3,000 in 2025. The Energy Information Administration warned that new cars priced under $15,000 may no longer be available by 2025. Further, people who buy a new car this year are unlikely to ever realize any fuel savings.
So, as you can see, they are performing exactly as expected.