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High vehicle prices hurting consumers ability to buy new

Posted On Wed, April 25, 2012

More Americans may be struggling to afford purchasing a vehicle in the future, as many may be unable to afford the high costs of automobiles that follow the government's planned fuel economy regulations, according to the National Automobile Dealers Association.

The federal government created the rules to help improve the country environmentally, as well as aid consumers in saving money on gas. However, by 2025, this will increase the average price of fuel-efficient vehicles by approximately $3,000.

With this in mind, the NADA's study, "The Effect of Proposed MY 2017-2025 Corporate Average Fuel Economy Standards on the New Vehicle Market Population," noted that approximately 7 million Americans who are in a lower income group - namely working families and college students - would be unable to receive financing help in order to pay for the vehicle.

"To work, fuel economy improvements must be affordable," Don Chalmers, chairman of NADA's government affairs committee, said in a statement. "While you can mandate what automakers must build, you can't dictate what customers will buy, nor can you dictate if a bank will make a loan."

Chalmers also noted that if Americans cannot make purchases of the new vehicles, there will be no benefit - environmentally or in gasoline savings - as the same cars will remain on the road. This would be counterproductive, and the initiative could fail.

Consumers who are struggling financially due to the continued high prices of fuel and automobiles may want to try to save in other areas to make a purchase work. By comparing a person's current plan with other auto insurance quotes, it may be possible to find rates that are affordable and manageable.

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