Politicians Set to Increase CAFE Standards; Be Afraid, Very Afraid
Automakers seem to have lost the political debate over fuel economy. The majority party in Congress and leading Democratic contenders to replace President Bush next year are pushing for higher CAFE standards. But do Detroit and Japanese automakers have the technology to meet these aggressive goals? Are U.S. consumers willing to buy the cars and trucks that may be mandated to get 55 mpg? Congress could pass legislation increasing CAFE as early as this month.
Used-car Shoppers Looking at Older Models
CNW Research showing almost 68% of used-vehicle shoppers looking for units five years old or older. Then 34% are looking at 8-to-12-year-old vehicles.
Shortages Lifting Wholesale Auto Prices
Wholesale vehicle prices at auction are up compared to last year. Analysts say higher prices are due to a shortage of off-rental units and not because of overall market strength.
Detroit Automakers Cut Production, See Rise in Resale Value
As Detroit automakers cut their production capacity, they are beginning to see increases in resale value of their models. Strong resale values help lower leasing monthly rate, buyers find. But domestics have not yet caught up to imports when it comes to resale value.
