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The cost of a cars has risen lower than the rate of inflation for nearly the past 90 years, and for much of the time period when cars were getting computerized

by danans 3y ago

The cost of a cars has risen lower than the rate of inflation for nearly the past 90 years, and for much of the time period when cars were getting computerized (since the late 90s) average new car prices dropped rather than went up. All the while cars were getting safer (seat belts, airbags, crumple zones) and far more reliable. https://www.in2013dollars.com/New-cars/price-inflation https://www.in2013dollars.com/New-cars/price-inflation The most recent price spike is a direct result of the pandemic supply chain issues and car makers shutting down manufacturing capacity in anticipation of a consumer collapse that didn't happen (instead the opposite happened). https://www.cbsnews.com/news/new-used-car-price-kelley-blue-book/ https://www.cbsnews.com/news/new-used-car-price-kelley-blue-...

linksnapzz 3y ago
The cost of a basic economy car, from the start of the emissions & safety era to today, is about double in constant dollars.
- danans 3y ago
  What date are you using as the start of the emissions safety era? A base price 1995 Ford Contour was $13805–$16190 [1]. ABS was an upgrade option on that car. A 2023 Nissan Versa is $15730 [2] Even the cheapest cars from 1975 cost the equivalent of $17000 in today's dollars [3] 1. https://www.caranddriver.com/features/a15143064/1995-10best-cars/ https://www.caranddriver.com/features/a15143064/1995-10best-... 2. https://magazine.northeast.aaa.com/daily/life/cars-trucks/cheapest-new-cars/#:~:text=With%20a%20starting%20price%20below,creating%20a%20much%2Dimproved%20vehicle https://magazine.northeast.aaa.com/daily/life/cars-trucks/ch.... 3. https://www.curbsideclassic.com/vintage-reviews/vintage-rt-comparison-the-nine-smallest-1975-economy-cars/ https://www.curbsideclassic.com/vintage-reviews/vintage-rt-c...
  - linksnapzz 3y ago
    I was thinking of a 1970 Dodge Dart, which last I checked was $21,000 in 2021 dollars; compared to the price of an average new car today ~42K. That today's average car might have more features is true; but for many of these features, you're not allowed to forego them in favor of a new, decontented, cheaper car.
    - dragonwriter 3y ago
      > I was thinking of a 1970 Dodge Dart, which last I checked was $21,000 in 2021 dollars; compared to the price of an average new car today ~42K. A more relevant comparison would be the $3452 average new car price in 1970 against today, which is $27,704 in today's dollars. > That today's average car might have more features is true; but for many of these features, you're not allowed to forego them in favor of a new, decontented, cheaper car. But you can get a car cheaper than the average new cars. In fact, “cars” proper are often less than the inflation adjusted amount from 1970; much of the reason the average new “car” price is higher is because it is more likely now to be an medium to large SUV than a car (sedan/coupe). Plenty of gas-powered sedans/coupes and small SUVs are less than $27.7K.
      - linksnapzz 3y ago
        I could also admit that in 1970, there were even cheaper cars than a Dodge Dart, but I'm excluding them b/c at the time, they were still a sort of novelty...the Dart, being "compact" only with respect to American cars of the period, is sufficiently large such that it doesn't register as a different category. As for modern small SUVs...you're still not going to get much change back from your $27K for a VW Taos, or Mazda CX-30, or Hyundai Santa Fe...how small are you willing to go for cheap?
        danans 3y ago
        > I could also admit that in 1970, there were even cheaper cars than a Dodge Dart, but I'm excluding them b/c at the time, they were still a sort of novelty.. The cheapest car I can find from 1972 was $2131 or $15k in today's dollars [1]. That's pretty close to the cheapest car today, the Nissan Versa at $16K. There was no time when cars were significantly cheaper (inflation adjusted) than they are today. The Model T would have cost $27000 in today's dollars. And in almost every other year in car history, cars have on average been more expensive than that [2]. 1. https://blog.consumerguide.com/6-cheapest-american-cars-1972-auto/ https://blog.consumerguide.com/6-cheapest-american-cars-1972... 2. https://blog.cheapism.com/average-car-price-by-year/ https://blog.cheapism.com/average-car-price-by-year/
  - linksnapzz 3y ago
    >A base price 1995 Ford Contour was $13805–$16190 [1]. ABS was an upgrade option on that car. True; and interesting that the Contour struggled in the market due to it being noticeably more expensive than the model it replaced! The thought was that being a much better car (to the tune of $6 billion in development costs), Ford could sell it on its merits, but as it turns out, buyers of small cars in the US are really, really price-sensitive.
    - dragonwriter 3y ago
      > as it turns out, buyers of small cars in the US are really, really price-sensitive. Unless it has a particular popular feature people (at least some segment of the population) are willing to buy for (hybrids, when they were newer, for instance), yes, because Americans mostly don’t want small cars, they settle for small cars if the price is compelling.

by danans 3y ago

linksnapzz 3y ago

The cost of a basic economy car, from the start of the emissions & safety era to today, is about double in constant dollars.

danans 3y ago
What date are you using as the start of the emissions safety era? A base price 1995 Ford Contour was $13805–$16190 [1]. ABS was an upgrade option on that car. A 2023 Nissan Versa is $15730 [2] Even the cheapest cars from 1975 cost the equivalent of $17000 in today's dollars [3] 1. https://www.caranddriver.com/features/a15143064/1995-10best-cars/ https://www.caranddriver.com/features/a15143064/1995-10best-... 2. https://magazine.northeast.aaa.com/daily/life/cars-trucks/cheapest-new-cars/#:~:text=With%20a%20starting%20price%20below,creating%20a%20much%2Dimproved%20vehicle https://magazine.northeast.aaa.com/daily/life/cars-trucks/ch.... 3. https://www.curbsideclassic.com/vintage-reviews/vintage-rt-comparison-the-nine-smallest-1975-economy-cars/ https://www.curbsideclassic.com/vintage-reviews/vintage-rt-c...
- linksnapzz 3y ago
  I was thinking of a 1970 Dodge Dart, which last I checked was $21,000 in 2021 dollars; compared to the price of an average new car today ~42K. That today's average car might have more features is true; but for many of these features, you're not allowed to forego them in favor of a new, decontented, cheaper car.
  - dragonwriter 3y ago
    > I was thinking of a 1970 Dodge Dart, which last I checked was $21,000 in 2021 dollars; compared to the price of an average new car today ~42K. A more relevant comparison would be the $3452 average new car price in 1970 against today, which is $27,704 in today's dollars. > That today's average car might have more features is true; but for many of these features, you're not allowed to forego them in favor of a new, decontented, cheaper car. But you can get a car cheaper than the average new cars. In fact, “cars” proper are often less than the inflation adjusted amount from 1970; much of the reason the average new “car” price is higher is because it is more likely now to be an medium to large SUV than a car (sedan/coupe). Plenty of gas-powered sedans/coupes and small SUVs are less than $27.7K.
    - linksnapzz 3y ago
      I could also admit that in 1970, there were even cheaper cars than a Dodge Dart, but I'm excluding them b/c at the time, they were still a sort of novelty...the Dart, being "compact" only with respect to American cars of the period, is sufficiently large such that it doesn't register as a different category. As for modern small SUVs...you're still not going to get much change back from your $27K for a VW Taos, or Mazda CX-30, or Hyundai Santa Fe...how small are you willing to go for cheap?
      - danans 3y ago
        > I could also admit that in 1970, there were even cheaper cars than a Dodge Dart, but I'm excluding them b/c at the time, they were still a sort of novelty.. The cheapest car I can find from 1972 was $2131 or $15k in today's dollars [1]. That's pretty close to the cheapest car today, the Nissan Versa at $16K. There was no time when cars were significantly cheaper (inflation adjusted) than they are today. The Model T would have cost $27000 in today's dollars. And in almost every other year in car history, cars have on average been more expensive than that [2]. 1. https://blog.consumerguide.com/6-cheapest-american-cars-1972-auto/ https://blog.consumerguide.com/6-cheapest-american-cars-1972... 2. https://blog.cheapism.com/average-car-price-by-year/ https://blog.cheapism.com/average-car-price-by-year/
- linksnapzz 3y ago
  >A base price 1995 Ford Contour was $13805–$16190 [1]. ABS was an upgrade option on that car. True; and interesting that the Contour struggled in the market due to it being noticeably more expensive than the model it replaced! The thought was that being a much better car (to the tune of $6 billion in development costs), Ford could sell it on its merits, but as it turns out, buyers of small cars in the US are really, really price-sensitive.
  - dragonwriter 3y ago
    > as it turns out, buyers of small cars in the US are really, really price-sensitive. Unless it has a particular popular feature people (at least some segment of the population) are willing to buy for (hybrids, when they were newer, for instance), yes, because Americans mostly don’t want small cars, they settle for small cars if the price is compelling.