Why Is An Average New Car So Expensive?

Autos today are built better and last longer. As a result, consumers are trading up.

According to Kelly Blue Book, the average price of a new non-luxury car in the U.S. at the end of 2022 was about $45,000. In 1926, a typical manufacturing worker earned about $1,500 annually and could buy a Ford Model T for about $500.

Today, the average annual income of that manufacturing worker is $31,000, so an equivalent car today should cost around $12,000. But today’s vehicles are roughly three to four times more expensive than cars from the beginning of the mass production era, adjusted for inflation. So where is the $10,000 car? Jim Anderton comments.

*ABOUT END OF THE LINE:*
Manufacturing veteran James Anderton expresses his compelling and unique opinions about the state of the manufacturing sector. He shares his thoughts and insights to help engineering and manufacturing professionals navigate through the challenges of world events, the blending old with new technologies, evolving processes, gaps in skilled labour, in an effort to help maximize productivity of their daily operations.

James is a former editor of trade publications in the automotive, metalworking and plastics industries with contributions to a wide range of print and on-line publications. He also brings prior industry experience in quality and manufacturing for a Tier One automotive supplier.

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#CarPrices #automotiveindustry #carmanufacturing

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Sounds like a sponsored video from the auto industry to justify their price increases beyond inflation. The improvements in technology are carrying over as benefits to all industries and the consumer would benefit as well. None of the manufacturers invented most of the improvement in general