10 ms·
Car ownership today, as then, is actually a pretty big financial hurdle for the poor. Cars are probably the most expensive way of getting to work. Let's count h
by Zach_the_Lizard 10y ago
Car ownership today, as then, is actually a pretty big financial hurdle for the poor. Cars are probably the most expensive way of getting to work. Let's count how they are expensive:
1) Large initial capital outlay; back in 1950 this might be $1500 but your earnings might be $3300 a year. You'd either need to get a loan, save up a significant portion of your salary, or get a used car (which were less plentiful as car ownership was much lower and earlier cars were less reliable)
2) You need to pay for ongoing maintenance. Oil changes, tires, etc. all add up. In the 50s the cars were more mechanically simple, so probably the labor costs were much lower (you'd probably do at least a portion of it) but there was more work to be done. Oil changes were more frequent, things like points had to be adjusted, etc.
3) Gas is not free. In the 50s this was in the $2.00 per gallon range in 2016 dollars. Cheap, but again not free
4) Parking costs money, then and now
Compare that to the previous costs:
1) Buy bus / train / subway / streetcar ticket
2) Shoes
It's much easier to afford a single trip as there is no capital outlay involved.
You're thinking like a well off software engineer. Think like a poor person.
Several of my family members have trouble getting to work because of unreliable and expensive car based transportation. They work just above minimum wage.
Their town has no real public transit to speak of, except in one or two unreliable bus lines, so getting to work is an actual hurdle.
- iamatworknow 10y agoAnd unfortunately, related to all of the points you mentioned, this need of the poorer suburban/rural people to own their own cars is what spurs on the subprime auto finance market. If you're making minimum wage there's a good chance you have bad credit, and your only option to get to work is getting a vehicle financed at a smaller, less reliable dealership who charges huge markups on decade old vehicles with 100k+ miles, and exorbitant amounts of interest, and they won't hesitate to repossess if you miss a payment. In the past couple of years in the US the Consumer Financial Protection Bureau and the FTC have started working to help these types of car buyers and protect them against deceptive practices in advertising and unruly markups, much to the chagrin of the so-called "Buy Here-Pay Here" dealerships. The recent election and the deregulation culture surrounding it, however, does may not bode well for the consumers. I wouldn't be surprised if the CFPB is dissolved entirely.