New car prices

["Mike Nakamura" <mike_nakamura@domain.elided>]

The tricky thing about new car prices is how to compare then and now.

In 1973, my brand new 72 Spider cost $ 5,300, in 1999 dollars, $ 19,886
(http://www.jsc.nasa.gov/bu2/inflateCPI.html). The calculator only goes to
1999. I think it's interesting that cars in the $ 18,000 to $28,000 are
being purchased by people that reflect what I thought when I bought my first
ALFA in 1973.

In 1972, a new 914 was about $ 6,000 and a 911T was in the $ 6,800 - $ 7,000
range. That makes a 911T equivalent $ 26,265 in 1999.

$ 5,300 was considered an expensive car in 1972. The ALFA Spider was
slightly upscale

If I remember correctly, a new Ferrari Dino 246 (1974) was about $ 16,000
which is $ 60,000 in 1999.

So what happened to car prices?

Gas prices were about $ 0.29 to $ 0.38 in the early 70s gas crisis era. In
1980, regular unleaded was $ 1.20 in Seattle. Thats $ 2.45 in 1999 dollars.


I remember thinking that Pirelli P-7 Tires were $ 70 - $ 100 depending on
size in the mid- 70s. And they didnt last long! $ 100 in 1974 is $ 338 in
1999. And this is not for 345/30 X 20 tires, more like 205/70 X 15. You can
get some really nice tires in the 215/40 X 17 size for $200, about $50 in
1973. So it seems, you get more tire per dollar today than in 1973.

A Big Three family car cost $ 3000 in 1973, thats only $ 11,260 in 1999.

So if you compare prices based on inflation, cars went through the roof.

If you compare a $ 50,000 ALFA Spider to a $ 170,000 Ferrari 360, the ratio
is not too different than in 1973.

The sad thing is that most of us saw income increases closer to CPI
Inflation rates, not cool car rates.

Mike
 
(425) 222-3982
mike_nakamura@domain.elided
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