An interesting exercise is having a look at how far your money really goes.
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Were we better off in 1970 or 50 years later in 2021? Prices of cars have escalated almost out of control, but have they?
I'll use my own experience here and try to compare apples with apples. My two cars for the comparison are of a similar size and similar price category for their day.
Around 1970 I purchased a new Ford Cortina GT, purchase price $2597 plus on road costs. In those days the average yearly income was $9870. That would make the Cortina 26.3 per cent of a year's wages.
We just recently purchased a new Kia Cerato GT, drive away price $36,990 (a bit over 14 times the price of the Cortina in 1970).
Average wage 2021 is $51,480 (5.2 times the amount earned in 1970).
The new Cerato GT is around 72 per cent of an average year's wages. On that basis you would have to assume that wages have not kept pace with new car prices. Prices of cars have jumped by up to 14 times, while wages have only increased about 5.2 times over the same period. The hidden variable is what you get for your money in a car these days - the answer, far, far more....
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