why are cars so much more expensive these days?

[kiteman]

i was just pondering about my $37,000 car on order and am really curious why cars are so expensive these days. i'm 28 years old so this may not be news to anyone older than me, but doesn't it seem like cars have increased in price well over inflation levels in the last 10 years or so? just for reference the original MSRP was about $22,000 on my 2000 Z28. the base 2012 SS is about $32,000. that's a 45% increase!

so i tried to dissect the numbers. for starters inflation is about 2%, so for 11 years let's just say that's in the neighborhood of a 25% increase in price in the US. so that leaves the 20% increase in price up for debate.

i guess the logical response would be that the remaining 20% increase in the camaro's prices would be the upgrades, since the 5th gen is mounds more advanced than the 4th gen (bluetooth, rearview camera, HUD, to name a few).

but at the same time....aren't car prices always relative to the prices of other similar cars regardless of features? in other words, every new car today has bluetooth, USB, rearview cameras, etc. just about. so are cars really more expensive today because they are more expensive to produce (by 20%) or is it just that the market in general has increased their pricing?

maybe it is very logical explanation, but i thought it might present an interesting discussion nonetheless.

[Brian52682]

The SS is a step above the Z-28, you can't compare the 2000 Z-28 to the 2012 Camaro SS. Compare a 2000 SS to a 2012 SS

[Sir Nuke]

well I guess its just the difference where you live.......I am not a finance major or anything....or truely know what the average inflation rate is.....but over the last 10 years the inflaction rate in my area has been between 4 to 6% per year.....jsut to keep things on an even keel. so I guess it really depends on where you are at.

[kiteman]

Originally Posted by Brian52682

The SS is a step above the Z-28, you can't compare the 2000 Z-28 to the 2012 Camaro SS. Compare a 2000 SS to a 2012 SS

wow, good point. i went and did a little research and MSRP for a 2000 SS was 28,500, which is pretty insane.

i guess really...if that's more comparable to the newer SS, the 2012 SS is a steal.

[Xello]

Try this:

http://www.usinflationcalculator.com/

If in the year 2000 I purchased an item for $28,500 then in 2011 the same item would cost $37,494.38.

Makes sense to me.

[Disco]

You can thank the Union for the high prices....hate to say it, but true.
I'm sure there is a bigger increase in price as the Union contracts are negotiated and renewed.

And please don't get me wrong..I'm not bashing UAW its just the facts.

[ZED SLED]

They're more expensive because the UAW needs $9000/hr to tell the robot to bolt on a bumper and the average exec's new yacht, Gulfstream, and summer home in the Caymans has doubled in price.

[Rogue Leader]

Originally Posted by Xello

Try this:

http://www.usinflationcalculator.com/

If in the year 2000 I purchased an item for $28,500 then in 2011 the same item would cost $37,494.38.

Makes sense to me.

This guy is the most right. Cars have basically kept pace with inflation since the late 70's. Now if you were comparing say 1969 to now then yes the value of the dollar is far lower. Ex a 69 Camaro SS for $3,800 new is only $23k today.

[HDDAN]

Originally Posted by Brian52682

The SS is a step above the Z-28, you can't compare the 2000 Z-28 to the 2012 Camaro SS. Compare a 2000 SS to a 2012 SS

You are right. I had two gen 4's, a 1998 Z-28 and a 2002 SS. The SS package added $4,500.00 to the price of a Z-28.I bought both cars new.

[kiteman]

Originally Posted by Xello

Try this:

http://www.usinflationcalculator.com/

If in the year 2000 I purchased an item for $28,500 then in 2011 the same item would cost $37,494.38.

Makes sense to me.

i paid 12,500 for my 2000 Z28 in 2003, but i guess the reality is also that you could not find a 2010 SS for 16,500 (that's what 12,500 is today using that calculator) if your life depended on it. so new for new makes sense, but i guess the 4th gen depreciated a hell of a lot more than the 5th gen has already, and/or cars are not depreciating like they used to.

[testmule]

Originally Posted by Xello

Try this:

http://www.usinflationcalculator.com/

If in the year 2000 I purchased an item for $28,500 then in 2011 the same item would cost $37,494.38.

Makes sense to me.

Too bad our pay doesn't go up the same amount.

[Fuel Fire Desire]

Also, the 2012 has more "stuff" on it than the 2000. Increased emissions standards call for more high-tech equipment, both mechanical (catalytic converter, engine architecture, etc) and electronic (more advanced computers, AFM, etc). Also, the 12 has stability control, side curtain airbags, onstar, CANbus, larger rims/ tires, IRS, and much more. Also, keep in mind the 2000 was built on the F-body, and in that incarnation it had been around for 7 or 8 years, while the 2012 is (for the most part) an all new design. (need to pay for that R&D). Not to mention everything said above; inflation, increased material costs, increased transportation costs, etc.


One final thing, 2000 SS = 315 hp, 2012 SS = 415 hp

[woodj]

My wife bought a brand new 2012 VW Beetle the other day. 2.0L Turbo, automatic, nice wheels, fairly plain other than that. $25k. Compare that to the 74 SuperBeetle I paid $1800 for brand new. The difference between a 2000 and a 2012 Camaro doesn't seem to be all that bad when you look at those numbers.

[GbrilliantQ]

Originally Posted by Fuel Fire Desire

Also, the 2012 has more "stuff" on it than the 2000. Increased emissions standards call for more high-tech equipment, both mechanical (catalytic converter, etc) and electronic (more advanced computers, AFM, etc). Also, the 12 has stability control, side curtain airbags, onstar, CANbus, larger rims/ tires, IRS, and much more. Also, keep in mind the 2000 was built on the F-body, and in that incarnation it had been around for 7 or 8 years, while the 2012 is (for the most part) an all new design. (need to pay for that R&D). Not to mention everything said above; inflation, increased material costs, increased transportation costs, etc.

This. Quit blaming eveything on the unions. I made $22 hr 10 years ago, today I make $17.90 with the UAW. Cost of gas went up from 87 cents a gallon in 95, to 4+ dollars last year. Is that the unions fault too?

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