The Obama administration's newly announced fuel standard of 54.5 mpg for automobiles is touted because it will supposedly save hundreds of millions of gallons of gasoline over the 'life' of new vehicles meeting this standard. Wonderful! There is just one problem. This statement totally ignores all the other costs associated with purchasing a car which meets this standard - costs which add up to tens of thousands of dollars.
For example, let's look at some of the numbers associated with the Chevy Volt, a vehicle which meets the new fuel standards, versus the Chevy Cruze, a similar economy car with excellent gas mileage.
. PRICE (w/taxes) *Car Payment **Yearly Fuel Usage ***10-year Op Costs
Chevy Volt $44,000 $753 220 gal $53,800
Chevy Cruze $19,000 $270 480 gal $35,400
* Assumes a $5,000 down payment, 6% interest, and a 5-year note.
** Assumes 55 mpg for Volt, 25 mpg for Cruze and annual mileage of 12,000 miles.
*** Assumes $4/gal for fuel and cost of financing car for 60 months. Does not include yearly taxes on vehicle or the higher than expected maintenance costs for the Volt. Nor, does it include the cost of recharging the Volt on a nightly basis.
So, the bottom line is: buying the Chevy Volt is going to cost the average buyer a minimum of $1,800 more per year than buying the Chevy Cruze! That's $18,000 over ten years that could go towards buying a home, adding to your retirement account, or saving for a college education.
These are the numbers your Government won't be discussing with you. Be sure they know the real costs but choose to support special interest groups who will benefit from investment in their industry. As always Government regulations cost you money, limit your choices, and decrease your Liberty.
It's time for the Second American Revolution.