Beginning in 2013 car buyers will notice new labels on all new and used cars on the lot. The Department of Transportation and Environmental Protection Agency have unveiled a new fuel economy label that will make comparing different cars much easier.

An effort was made to change the current fuel economy labels because of the difficulty of using them to compare different types of engine technology. How do you compare the cost of driving the all-electric Nissan LEAF to the cost of driving a Toyota Corolla?

The new labels provide:

• New ways to compare energy use and the cost between cars of different energy sources

• A more useful prediction on how much buyers will spend or save on fuel over the next 5 years compared to the average new car

• An easy to understand 1-10 scale of how the car compares to others in terms of fuel consumption and smog ratings

• An estimate of how much energy the car will take to go 100 miles

• For electric vehicles: Information explaining how far the car will go on a single charge and how long it will take to fully charge.

• A QR code in the lower right corner for Smart Phone users to access comparison information and to let buyers enter their own driving information to get a more accurate savings quote.

What is Good About the Label?

The new label gives us a lot of comparison tools. Prominently displayed in the upper left hand corner, the first place most people are drawn to, is the combined fuel economy. The combined fuel economy will change based on the individuals driving patterns and habits but this is based on the EPA’s industry standard calculation. Shown right alongside are the city and highway miles per gallon numbers.

Likely two of the most important numbers for buyers are displayed in two of the other corners. Just below the MPG rating is the estimated total fuel cost. This cost is based on an average of 15,000 miles driven per year. But arguably more importantly is how this cost compares to other cars. In the upper right hand corner is the savings or additional spending cost for 5 years, as compared to the average new car. The benefit of displaying this number is that it will give car buyers a good idea of how much they can save if they choose to buy a more fuel efficient vehicle or how much more it will cost them to buy a car with a lower fuel economy. 

One of the most debated parts of the label is the pair of sliding scales. These scales rank fuel economy and green house emissions on a 1-10 scale, with 1 being the worst and 10 the best. Many people were supportive of a letter grading system, but the drawback to that was that vehicles would have to be more grouped instead of ranked.

These scales will not only provide for an easy ranking system to compare all aspects of the label but will also force manufacturers to improve. Those manufacturers that have most models in the 9 or 10 range will reap the benefits pretty quickly, while those manufacturers that have models mostly in the 1’s and 2’s will soon be exposed for their lack of efficiency.

What Could be Better?

The biggest issue with these labels is the amount of information packed onto one fairly small label.  Some drivers may feel a bit overwhelmed when trying to compare everything on the labels of a few cars they are considering. But this is also beneficial in that it puts all the information you will likely need to compare in one easy to access location. Buyers won’t have to worry about doing any math or gathering all the numbers from different sources.

The comparison savings or additional spending costs is also a bit misleading. If a buyer is in the market for an SUV or truck this number isn’t going to tell them the whole picture, all they will know is how this car compares to the average car, different classes of vehicles aren’t taken into consideration here. This was done for a few reasons. First, it sets a uniform bench mark for every vehicle on the market. By comparing to the industry average you get a true bench mark of where that car falls in the grand scheme of things. Second, it will hopefully sway a few buyers to downsize if they do not absolutely need such a large car. When buyers see just how much it is going to cost them, some will decide to pick something with a little better fuel economy. 

Over all we like the new labels. Giving drivers an easy means of comparison will help make sure that, for the most part, people are buying the right car for their needs. The new labels will also force manufacturers to improve their cars. With the blatant rating system, no one will like being given a score in the bottom of the scale. Manufacturers will do everything they can to raise their ratings, which in turn will save us all money regardless of the type of vehicle we need.

Read More About the New Labels here.