On Mon, 01 Dec 1997 20:29:52 -0800 pat bailey <pbailey@qnet.com> writes:
>> Comparing dollars today with dollars some years ago is comparing
>apples
>> and oranges.
>> Rick Morrison
>>
>Oh I disagree! If you are an average working person figure out how
>many
>hours you had to work back then for a new car and how many you have to
>work now and you aren't comparing apples and oranges.I bought a brand
>new Fiat 124 coupe in 1970 for $3100 which was about a third of my
>yearly gross Today an equivalent car would be around 25 to 30 grand
>which is over half of my gross and I am paying a hell of a lot more in
>taxes etc so the disparity is even more.I look at what things cost by
>how long do I have to work for it.In '67 I bought a 62 Corvair used
>for
>$400 over a months pay Today I could get a nice MGB for less than a
>months pay probably 2 to 3 weeks pay So new cars are more expensive
>and
>used cars are cheaper accounting for inflation( actually DEFLATION of
>the dollars worth)
>Just my .25 worth...used to be .02 worth.
>
>Pat
Pat,
The analogy doesn't hold. The car you are comparing is not the same
car earlier.
If the 124 is identical in 1997 as it was in 1970, then the comparison
is valid. Most of the "features" (and I use the term loosely) on today's
equivilant cars were not even availible on the 1970 models, if they were
even thought of.
I would venture to say, that if all the bells and whistles on today's
cars were stripped (and the attendent cost stripped from the sticker) the
true cost would be more in line.
Getting back to the MG in particular, in 1967 a BGT had a suggested
retail price of $3095.00. That same car today, in #1 condition would run
you $5-6000. THE SAME CAR. not something "equvilant." There just ain't
any such animal.
The next point that could possibly pop up is the cost of the new MGF.
Again, it's not an equvilant car. Very basically, they are in the same
game, but not in the same league. Again remove all the refinements
(Variable Valve control, EFI, etc, etc) and your closer to the ball park
with the earlier MG's.
I'm not sure exactly what the CPI correction factor is for 1997 versus
1970 or 1967, (the base haveing changed at least twice in that time), but
I think you'll find that projecting back and converting the cost of the
cars to today's dollars it will shock you.
Rick Morrison
72 MGBGT
74 Midget
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