Recoup $1,300 cost of new fuel standards

Tara Baukus Melloq_v2.gifDear Driving for Dollars,
In an article explaining the new 35.5 mpg CAFE fuel economy standards, you (and other sources) reported that the government projects the standard will add $1,300 per car, which will be recouped by "most people" within a few years. What if gas prices increase to $4 or $5 per gallon? Then who wins?
-- Jay

a_v2.gifDear Jay,
The $1,300 increase that the government estimated is an average for all vehicles, and automakers will most likely raise prices of each model in their fleets by varying amounts. Similarly, the time frame to recoup the extra cost assumes that drivers travel an average of 12,000 miles annually. So while these averages are a good point of reference, they likely aren't accurate for the actual driving experience that many people will have.

Gas prices will most likely be substantially higher by then, so it's conceivable that $4 per gallon gas could be the norm by 2016. The higher gas prices go, the quicker each car owner will recoup the additional cost of the vehicle, and it will be even faster if he or she drives a lot of miles annually.

If you have a car question, e-mail it to us at Driving for Dollars.

News alert Create a news alert for "auto"


Show Bankrate's community sharing policy
          Connect with us

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

Partner Center


Tara Baukus Mello

Diesel car sales grow

While gas prices have dropped dramatically, the sales of diesel cars has continued to grow, rising 13.5 percent in 2014 over 2013, according to the latest data compiled by IHS Automotive for the Diesel Technology Forum.  ... Read more

Connect with us