Wednesday, 8 August 2018

Cars. Inflation. Learn from history.........from Rico



Way back in 1975, if you wanted to drive a cheap POS Chevy, you could get a V-6 sedan that seated six adults for $3,402.

 

If you want to do the same thing today in 2018, you can get a 1.4L sedan that seats four for $25,395.

 

Pay more, get less.

- This is inflation writ large...

3 comments:

Billll said...

According to the inflation calculator I found which assumes annual inflation of 2.9%, that $3400 Chevy would today run you just a hair less than $16,000. That inflation rate is outrageously optimistic and the newer car gets 25-30 mpg and has much better crash protection. Of course that crash protection comes at a price. A 5 mph crash could be easily fixed in '75, today it would likely total the newer car.

JBurns said...

not to be argumentative but, did you factor in the quality of the 1975 car vs. 2018?

Chances are the 1975 car was American made....some real dogs there

my recollection from 1975 cars suffered from the following maladies:
car will not start in the cold
tires wore unevenly
electrical short - dead battery
car is rusting through (see front quarter panel)
car was heavy -- I know from how often it needed to be pushed
car died on highway
rear wheel drive was awful in the snow
car ate gas
lap only seat belt
car burned oil

I could go on. truth is -- today's cars have all incorporated industry best feature / options. competition is good

jon spencer said...

A inflation calculator says, "What cost $3402 in 1975 would cost $15756.28 in 2017.".