White House says it will save Americans $2,400 on car purchases — this is why
The administration of President Donald Trump announced Thursday that rescinding the Obama-era “endangerment finding” could reduce vehicle costs by an estimated $2,400 per car, according to statements from the The White House and the Environmental Protection Agency.
The move, unveiled alongside EPA Administrator Lee Zeldin, reverses a 2009 policy introduced during the administration of Barack Obama. That policy enabled the EPA to regulate greenhouse gas emissions—including carbon dioxide, methane, and nitrous oxide—from vehicles and engines beginning with model year 2012.
Supporters of the repeal argue that the regulation increased manufacturing and compliance costs for automakers, which were passed on to consumers. Steve Milloy, a former EPA transition adviser during Trump’s earlier administration and a senior fellow at the Energy & Environment Legal Institute, said the financial benefits of rescinding the rule could exceed official estimates.
“The EPA has estimated economic benefits from rescinding the endangerment finding for vehicles to be as much as $4.7 trillion between 2027 and 2055,” Milloy said, arguing that the estimate may be conservative. He added that lower vehicle prices and stable fuel costs could have long-term ripple effects throughout the economy.
EPA officials also pointed to avoided costs associated with electric vehicle production requirements and reduced regulatory compliance burdens as factors that could contribute to lower vehicle prices. Zeldin stated at the White House that manufacturers would no longer be required to measure, compile, or report greenhouse gas emissions data for vehicles and engines under the revised policy.
A spokesperson for Ford Motor Company said the company welcomed the decision, noting that Ford has advocated for “a single, stable national standard” that aligns with consumer demand, market conditions, and job growth.
Industry voices expressed cautious optimism about the potential impact on prices. Tim Pohanka, vice president and executive manager of the Pohanka Automotive Group, said that while cost savings are possible, they may not be immediate or uniform across models.
“Would we see a $2,400 reduction right away? Probably not,” Pohanka said, adding that overall affordability remains a major concern in the auto market. “The cost of a car has outpaced inflation dramatically.”
Pohanka also noted that the removal of certain federally encouraged features, such as automatic start-stop systems, could reduce manufacturing complexity and long-term maintenance costs.
Lauren Fix, an automotive analyst with The Car Coach, said that while the exact savings may vary by brand and model, reducing regulatory requirements could help make vehicles more affordable overall.
“On every car brand, it’s going to be slightly different,” Fix said. “But in general, this could help lower costs for consumers.”
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