Rising New Car Prices and Regulations
There are always top tier reports of the new cars which are put into production each year and the comparisons of the best models are often the ones which draw the most attention in the media. The specific categories which have the highest degree of importance among the needs of today’s consumers are beginning to trend in a completely different direction than what they have in the past. This is a response to the ongoing rise in the cost of fuel as well as the regulations which are currently just over the horizon. Specifically this is the category of fuel efficiency and how it is rated by the EPA. These are the big stickers that you find on the side windows of all new cars and the information which the provide gives an estimate of what the fuel economy of each new car and truck happens to be. The price of a new car may be significantly affected by these regulations in the not so distant future.
The actual focus on the EPA ratings is not exactly new in the automotive industry and as a matter of fact it has been around for many years already. The specific regulations which go into great detail and include EPA fuel economy information are representative of how this affects current as well as future new car models and how they are produced. Additionally it dictates how the auto manufacturers will need to come up with new ways of making all new vehicles more fuel efficient by a certain date. Along with the need to reduce the usage of fuel there are also ongoing concerns which focus on the effects of pollution as a result of burning the fuel in the first place. Alternatives like electric vehicle however remain quite costly to produce and thus the price tags on them are often out of reach of the typical consumer today so they are still not the primary focus.
With the price of new cars having increased within most of the vehicle categories in 2011 and the 2012 new models showing up, it does appear to indicate that with all of the extra work and research which the auto makers are having to put into designing new vehicles which will adhere to the upcoming regulations will result in higher prices for new cars in all categories. In 2011 there are several new cars under 10 000 which although did not have to adhere to the upcoming regulations, they do however represent the state of the art technology regarding fuel efficiency at this time. The actual EPA ratings of these new cars goes well over 30MPG which in comparison to other vehicle categories like SUVs for instance is going to save the average consumer who drives to and from work each day a substantial amount of money over the course of a year. There is a bit of a trade-off for this cost savings though and this is the fact that most of these new cars under 10k will be the basic trim with few features and they will be in the smaller car categories as well. The point which drivers of these cars make most often is that it is a fair trade-off because they had a specific goal to own the most cost effective vehicle which they could find.
Many economists will tell you that when you set your goals like the owners of these small, fuel efficient new cars have done, and you stick to those goals then in the end your overall savings will be significant. Ownership costs go well beyond the initial price which a person pays for a new car and the likelihood of these prices increasing is very high. Still, the costs will continue in the form of insurance, car payments, maintenance and of course the cost of keeping fuel in the car. The future beyond 2011 and into 2012 will surely see the effects of the additional regulations being implemented to meet higher EPA ratings in the fuel efficiency of new vehicles. The price of a new car will certainly reflect these changes too which does leave some concern among economists as well as consumers.