Car prices could rise by $5,000 to $15,000 if a 25% tariff on imported cars is maintained, according to Goldman Sachs.

Automakers are likely to pass on the impact of tariffs to customers by raising prices, and that could close the price gap between Tesla’s electric vehicle and competing gas-powered cars, analysts said.

  • ch00f@lemmy.world
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    6 days ago

    People tend to not drive their old cars into the ocean when they buy an EV.

    They sell it to someone who is probably replacing an even older car. Newer cars tend to be more efficient than older cars, so the effect is the same.

    • CmdrShepard42@lemm.ee
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      4 days ago

      You’re right they tend to sell them to dealerships who sell some at auction to “buy here pay here” lots and the rest get crushed. Cars aren’t like currency where they keep circulating around forever.

    • wildbus8979@sh.itjust.works
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      6 days ago

      It’s been diminishing returns since basically the end 2000s. Like an average of 1~2mpg better in 15 years. That’s nowhere enough to offset production of new cars.

      • ch00f@lemmy.world
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        6 days ago

        Sure. Either way, if the goal is to keep older cars on the road, I don’t think EVs are impacting that. If cars are useful, they get driven. If there isn’t a market for them here, they get shipped overseas to developing markets to be used there. Nobody is throwing away functioning or serviceable vehicles.