The Average Car Cost $34,077 In 2016 - Is It Worth It Compared To A Generation Ago?

There are many reasons why cars are so expensive. But first, understand this: Cars actually aren’t expensive. They’re cheap. Scrapyards buy them every minute of every day for about $100 each. Hit Craigslist and you’ll find hundreds of running cars for sale for under $1,000. Hit the seedier used car lots and they’ll finance anyone into a near-junker for a few bucks a month. Hell, there are about 260 million cars crowding America’s roads. Cars are so cheap here literally anyone can afford one.

It’s when you turn to new cars that they get so expensive. The cheapest new car for sale in the United States is the Nissan Versa S, which carries an advertising-friendly base sticker price of $11,990. Naturally, that doesn’t include the usual “destination and handling” extortion of $865, but $12,855 isn’t bad for an entire new, never-been-used car with a warranty. The entire cost of that Nissan is only $505 more than what Porsche charges for the “Powerkit” option on the 911 Targa 4S, which that adds a mere 30-horsepower to that sports car.

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atc98092 - 4/25/2017 2:17:27 PM

+2 Boost

A rather juvenile article that at least got it right in the end. Cars cost more today (price adjusted) than in the 60s because they are vastly superior in every way. Besides all the safety features that have been added over the years (adding weight along with cost), they perform better, are more comfortable, and have creature comforts that we didn't dream of then.

My first car was a 1963 Impala SS. In 1970 it was beautiful, powerful, and a great car for someone in high school. I have great memories of that car. If I drove it today, I know I would be unable to tolerate it's lack of power steering or brakes, no AC, AM radio with reverb and lack of handling. But that 300 HP 327 and 4 Speed Borg Warner with Hurst shifter would still be enjoyable, at least as long as the road was straight and I didn't need to stop quickly!

TomM - 4/25/2017 2:56:15 PM

+2 Boost

My first car was a 1939 Chevrolet Master Sedan - 3 speed on the Column - and a 206 cubic inch 6 cylinder that put out 85 Horsepower. I need not think of great memories of that car - since I sold it to my neighbor decades ago - and the family still has it! I see it everyday. Back then - kids did not have cars - so having inherited the car in the Barn of the property my great uncle left me - I had lots of time before I was old enough to drive it on the road - that it was almost totally re-finished or restored by that time. I could not get replacement seat fabric that matched the original - in fact it is easier to do that now.

But - I had a car - it was actually MINE. Having the ability to use the family car was something people bragged about. My name was on the title of this baby - and it really did not matter how fast it went - I was already working on cars for the raceway - and the drag strip that went faster.

It has one aftermarket addition - A Philco tube AM radio that for about 6 months of the year never warmed up enough for it to actually play anything. WE could tell the outside temp from how long that took.

MDarringer - 4/26/2017 8:31:26 AM

+1 Boost

I think normal cars are definitely worth the money. What you get for the money on a mid-sized sedan for example is an excellent value. Where I see the breakdown of value with with premium cars.

Premium vehicles used to significantly outdistance mainstream vehicles and thereby justify their cost. That just isn't the case today. As an example, a Ford Fusion is a competent reason NOT to buy an Audi A4, BMW 3 Series, or a Mercedes C Class--IF you can get past badge snobbery. Comparably equipped, those cars will be $20-25K more expensive and you really get very little in return.

quizz - 4/26/2017 2:11:15 PM

+1 Boost

Don't forget that a $34,000 Honda or Toyota will last longer than anything built 40 years ago for the same price (adjusted for inflation of course). Not to mention perform better than a BMW/Mercedes of that era, driver safer and has a better stereo.