A recent study by the Center for Automotive Research (CAR) found that car prices could rise by as much as 20 percent if the Obama administration's most aggressive fuel efficiency targets are instituted by regulators.
If the government sets fuel efficiency standards that mandate the average fuel efficiency of vehicles to be 60 miles per gallon by 2025, the average price on a new car could allegedly rise by as much as $6,400, CNBC reports. In November, the average vehicle was bought for $30,000, according to TrueCar.com.
The study also made predictions about the alleged increase in car price if more moderate fuel efficiency standards are instituted. If average fuel economy is 42 miles per gallon, the average vehicle will cost $4,200 more; if fuel economy is set at 50 miles per gallon, new cars will be $5,200 more expensive on average, the study claims.
While fuel efficient vehicles can provide large savings at the pump, such cars aren't always easily affordable. Consumers who aren't sure if they can afford a more fuel efficient vehicle can use a car loan payment calculator to help them set their budgets.