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Implications of HR6

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SkyTrooper

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So I'm reading through this Energy Bill, with an eye to my next vehicle purchase. I'd like to buy a fast sports car (possibly a GT Mustang), but my current car still has a few years left in it. From my reading of the bill the new fuel standards, 35 MPG [!?] for passenger cars, don't hit until 2011 so I might be able to wait another year or two. Is this correct or did I miss something in the bill?

Also, I don't want to have to switch over to the new lightbulbs because studies show they make people depressed, they are more expensive, and they contain mercury which can be bad if they break. How long do we have until we have to switch to the new lightbubs? Is anyone planning on "stocking up" on incandescent lightbulbs?

Here is the link to the bill that I have: H.R.6

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So I'm reading through this Energy Bill, with an eye to my next vehicle purchase. I'd like to buy a fast sports car (possibly a GT Mustang), but my current car still has a few years left in it. From my reading of the bill the new fuel standards, 35 MPG [!?] for passenger cars, don't hit until 2011 so I might be able to wait another year or two. Is this correct or did I miss something in the bill?

Sounds like a question for me.

The bill will indeed require corporate average fuel economy to increase to 35 MPG by 2011. What this means is that the average fuel economy for new cars must be 35. They can make some cars with less than that, but must also make some cars with more than that or face penalties. This bill applies to new cars and won't outlaw any existing car on the road. It will mean that manufacturers are going to put the kibosh on a lot of their upcoming cars that might have gotten less than 35 MPG. For instance, GM has already killed the rear-wheel-drive Impala that they had planned, and has changed their Camaro from a mass-market Mustang competitor to a more-expensive, more-limited-market car like the Dodge Challenger. (which is in the $40k range!)

Basically, what this bill means for muscle cars is that there will be less of them and they will be more expensive.

As for what this means to you: if you're willing to buy used, then likely you will have to pay a few dollars more, as muscle cars will likely go up in value due to the lack of newer versions. If you insist on buying new, then again be prepared to pay more for a Mustang, Camaro, or Challenger. Because of product cycles, all three of those will still be available, even into 2011. But beyond that is anyone's guess. What I can tell you is that you will likely get plenty of warning - even when they killed the Camaro and Firebird back in '02, you could still find new ones on dealer lots well into 2003.

It's just that, without a market for reasonably priced, fast cars, there won't be a future development of muscle cars for a number of years while technology catches up. Basically like the 70's and 80's all over again. Which, if you're a fan of these cars, is Not Good.

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Thanks for the info. I think then I'll probably be buying a 2010 muscle car and try to outlast the ban (I'm assuming the manufacture of spare parts will continue to be legal). Would you expect 2010 muscle cars to actually hold value as long as these fuel standards are in place?

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Thanks for the info. I think then I'll probably be buying a 2010 muscle car and try to outlast the ban (I'm assuming the manufacture of spare parts will continue to be legal).

Yes, spare parts will, unless the laws change. And 2010 won't be a cut-off date per se. It has more to do with product lifecycles, which are planned for years in advance by manufacturers and which expire when parts/labor contracts are up, even if painful laws are enacted. The Camaro, for instance, will likely run for at least 3-4 years from when production starts, and production is slated to start February 2009 (as a 2010 model), so I would expect it to run to, at the very least, 2012 (as a 2013 model). Barring unexpected developments, of course.

Bear in mind that usually these things are killed when a company has financial difficulties and must make a decision of whether to develop a new model. (I.e. most cars carry over as nearly the same from year-to-year with an entirely redesigned model coming out every 3-6 years) Like for example Chrysler's recent financial woes and the recently announced killing of the Viper.

Would you expect 2010 muscle cars to actually hold value as long as these fuel standards are in place?

It's entirely possible, although from what I've seen you should expect Mustang sticker prices to go up soon - and for the Camaro debut price to be higher also (like the Challenger already is). This will mean that used modern musclecars will also see their value hold or go up more than they would have otherwise.

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