Tuesday, May 19, 2009

Have a Good Used Car? You're Wealthier!!

If you own a decent car, your net worth just increased.

Obama on Tuesday planned to announce the first-ever national emissions limits for cars and trucks, as well as require a 35.5 miles per gallon standard. Consumers should expect to pay an extra $1,300 per vehicle by the time the plan is complete in 2016, officials said.

The price of new cars, in general, affects the price of used cars. So when Obama makes new cars more expensive, decent alternatives (your pretty-good used car) become more valuable.

However, since no one will be able to afford ObamaCars (nor ObamaHeat, ObamaLight, nor ObamaHotWater), it remains to be seen how the theory works in the ObamaSmolderingPit Economy.

No comments: