In the end, we can’t have it all. Increases in fuel efficiency means that our cars will be more expensive as well, as manufacturers scramble to meet the proposed 54.5 mpg industry standard for 2025 that they’ve all (with the exception of Volkswagen) agreed to.
How much? A not-exactly-insubstantial $1,946 per car—and another $1,000 on top of that in the face of other regulations. This will affect cars built for the 2016 to 2025 model years, and doesn’t factor in future inflation. In total, $140 billion will be spent in research and development by the carmakers to eke out that last drop of gasoline, and that cost “trickles down” to us, the humble consumers.
But, the automakers say, consumers will save up to $6,000 in total gas savings, over the lifespan of a car, and recoup their initial investment in just two years. The EPA estimates that families will save $140 per year, even if the car is financed with interest.
Of course this isn’t as dramatic as the initial increased cost. Will we be spending money on the initial investment—our cars—and saving money on gasoline, in a reversal of the modern-day razor-and-blades model? Buy the car, but save the gas, it seems. That’s the price for progress.
Source: CNN Money