Car industry bracing for spike in used-car demand following emissions laws

AutoExec Summary
The upcoming New Vehicle Efficiency Standard (NVES) is predicted to impact the used-car market due to its focus on enhancing fuel economy and reducing emissions. Experts anticipate a 19% decline in new-car sales, leading to increased demand and potentially higher prices for used cars as consumers seek to avoid the new regulations. According to BDO Automotive analysts at the Australian Automotive Dealers Association’s conference, dealerships’ profitability will suffer, with the secondary car market being one of the few beneficiaries. However, this shift is likely to burden consumers already facing high living expenses, with transportation costs comprising 17% of household budgets.

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