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Expect New Car Prices to Go Up as California Adopts Tighter Emissions Regulations

January 27, 2012

Consumers can expect a further rise in car prices starting 2015, as the California Air Resources Board proposed tighter emissions laws to reduce the amount of pollutants in the air.

Chairman Mary Nichols of the California Air Resources Board wants new cars to emit at least 75% less pollutants by 2015. Furthermore, Nichols is hoping that this move will lead other states and the rest of the world in the fight against global warming.

The new rule also states that at least 1 in every 7 new cars sold by 2025 will hopefully be either a plug-in hybrid or zero-emissions car. Hydrogen technology is not far away, but the world is still waiting for the first true Hydrogen powered car.

The board is hoping that California will have 1.4 million plug-in hybrids and zero-emissions vehicle by 2025. Take note that hybrid cars and pure electric vehicles are more expensive than a regular car. The most popular hybrid car in America will have to be the evergreen Toyota Prius.

The newest Prius in the market is the plug-in hybrid. With a base price of $32,000, it is hard to argue with the fuel efficiency and green factor of the Prius plug-in hybrid. However, compare the cost of the Prius plug-in to a conventional car such as the Camry with a $21,995 base price; can car buyers afford paying a premium for a cleaner car?

In order to make a car more clean-burning and fuel-efficient, the technology utilized will not only focus on enhancing the properties of the internal combustion engine. The cars of the future will also have to be lighter in weight, but strong enough to protect the passengers in a collision.

This is easier said than done. Developing the kind of technology that will produce cleaner cars will cost a lot of money. Car makers will need to invest a lot of time and money in coming up with solutions on how to cope up with stringent emission laws.

The director of the National Automobile Dealers Association was right when he said that while new emissions regulations are good for the environment; this will also result in extremely unaffordable cars. Forrest Mc Connell further stated that adding $3,000 or more to future car prices will make consumers shy away from car dealer showrooms.

Hybrid cars, ever since being introduced to the US market 13 years ago, only account for 2.1% of vehicle sales in the national market, with California having a 4.1% market share.

If this means something, then it is proof that Americans are still not sure if the acquisition price of a hybrid car is worth the fuel savings in the long run.

The goal now is to come up with the technology that will make future cars cleaner and more responsive, while remaining exciting to drive.

The true dealer cost of the car of the future will increase, but we make sure that you still get competitive new car prices with a simple and free online quote.

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