Obama’s Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA) codified their war on American drivers by finalizing new car mileage mandates, otherwise known as CAFÉ standards. Increasing the cost of new cars by thousands of dollars, new CAFÉ rules will require cars built in 2025 to get at least 54.5 miles per gallon. With current 2011 cars averaging 28.6 miles per gallon, the EPA is going to require automotive manufacturers to nearly double fuel economy standards in a little more than a decade.

While the Obama administration has made the 2009 Auto-Bailout one of the center-pieces of their re-election campaign, the reality is that these new rules will affect and cost consumers more money. Emily Wismer, Policy Analyst for Independent Women’s Forum writes:

While it sounds fantastic to drive twice as far on each tank of gas, this extra efficiency comes at a large, up-front cost to consumers: New cars are expected to cost about $2000 more because of this mandate. As a result, many potential new car buyers will be priced out of the market. The effects of higher new car costs will ripple into the used car market, as fewer families will be able to trade in old vehicles for a new car. That means less supply and more demand for used cars, and higher prices for used cars as well.

Ms. Wismer’s $2,000 figure might actually understate the actually cost of complying with the EPA’s newest mandate. Bill Underriner, chairman of the National Automobile Dealers Association, estimates that the new regulations could increase the cost of new cars by $3,000 which would “shut almost 7 million people out of the new car market entirely and prevent many millions more from being able to afford new vehicles that meet their needs."

The Obama Administration hails new CAFÉ rules as a necessity to save consumers money at the pump. If higher mileage standards are inherently such a good deal, one has to wonder why the government must ratchet up CAFÉ rules. Consumers are more than capable of deciding what car they would like to drive and what they fill their car up with. Next time you hear about a government mandate coming to save you money, make sure to hold on to your wallet.

Posted by Chris Prandoni on Monday, October 15, 2012 12:44 PM EDT

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