New cars have become more affordable
Discussion
Back in 1981 when I started out in the world of work I bought a copy of the "Motor Road Test Annual". I had the idea of putting it aside for 10 years and then coming back to it to have a look at how cars had changed.
Although forward looking I've also proved to be a tad forgetful, stumbling across said publication earlier this week some 30 years on.
In an idle moment this morning I did a quick compare of 1981 prices on selected models against what I felt could be viewed as their 2011 descendants. Of course there will be those who have an opinion on whether a particular model is or is not a worthy compare. Indeed I have my own doubts as to whether the AM Lagonda has a successor for instance. But it doesn't matter.
The table below compares the 30 year percentage increase in price across 'equivalent' models. I've also grouped them against RPI over the period (c. 320%) and increase in the average wage (c. 495%). Given the technological improvements over the period the average wage compare is probably a better measure of affordability and value.
The great thing about data is that if you torture it for long enough it will confess to whatever you want, but here's some conclusions I've drawn over my morning cuppa:
- with the exception of Ferrari, all of the descendant models in the list have increased in price BELOW the average wage increase... from which you may conclude that cars are better value now than 30 years ago
- the producer of two of the most gorgeous cars from both periods, Maserati, is the best 'value' across the compare
- Ferraris have bloated in price (but provide my favorite from both eras)
- there's some attractive machinery around the RPI level (Merc, Aston, Jaguar, Porsche) suggesting that, if you can afford them, top-end cars are better value
- most of the cars have evolved well over the 30 years into more desirable models with the exception of two Brits that have moved to foreign ownership (personally I see the new Jag XJ and the Mini as major steps backwards in appeal).
Any way, just a bit of idle musing and I must apologize for not getting around to the analysis some 20 years ago.
I will try and remember to provide an update in 2041
Although forward looking I've also proved to be a tad forgetful, stumbling across said publication earlier this week some 30 years on.
In an idle moment this morning I did a quick compare of 1981 prices on selected models against what I felt could be viewed as their 2011 descendants. Of course there will be those who have an opinion on whether a particular model is or is not a worthy compare. Indeed I have my own doubts as to whether the AM Lagonda has a successor for instance. But it doesn't matter.
The table below compares the 30 year percentage increase in price across 'equivalent' models. I've also grouped them against RPI over the period (c. 320%) and increase in the average wage (c. 495%). Given the technological improvements over the period the average wage compare is probably a better measure of affordability and value.
The great thing about data is that if you torture it for long enough it will confess to whatever you want, but here's some conclusions I've drawn over my morning cuppa:
- with the exception of Ferrari, all of the descendant models in the list have increased in price BELOW the average wage increase... from which you may conclude that cars are better value now than 30 years ago
- the producer of two of the most gorgeous cars from both periods, Maserati, is the best 'value' across the compare
- Ferraris have bloated in price (but provide my favorite from both eras)
- there's some attractive machinery around the RPI level (Merc, Aston, Jaguar, Porsche) suggesting that, if you can afford them, top-end cars are better value
- most of the cars have evolved well over the 30 years into more desirable models with the exception of two Brits that have moved to foreign ownership (personally I see the new Jag XJ and the Mini as major steps backwards in appeal).
Any way, just a bit of idle musing and I must apologize for not getting around to the analysis some 20 years ago.
I will try and remember to provide an update in 2041
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