https://www.motoringresearch.com/features/cost-car-year-born/
Motor, October 1948, the Ford Anglia was the cheapest four-wheel car in Britain at £310 (£10,703 in today’s money using their conversion)
1951 Austin A30 would have set you back £507 (£17,504 in today’s money)
Average house price in 1950 was £1,940 (£66,980 in today’s money: cue howling at the moon here)
So early 1950’s when motoring really began to take off in Britain, a house was 5.54 cheaper in today’s terms than October 2022’s figure of £371,158.
There was also a lot of house scarcity then too, but less domestic property speculation, stricter financing terms and less foreign money investing in property.
Can we relate the two periods? Possibly, but these things are never straightforward, so comparing it to a house price won’t help much. Financing, regulation of ownership, taxation etc. are very different nowadays plus the numbers in these historical comparison formulae never seem to relate to the actuality on the ground.
If we do stack the car price numbers up against each other;
Pitching the Ford Fiesta as a current petrol equivalent of the Anglia; the 2022 OTR price is £20770 (up 19% on 2019) as against £10,703 just about ½ the equivalent price for a similar market niche.
Possibly a sign of the complexity involved in designing, producing and financing modern cars, or something else?
https://www.honestjohn.co.uk/news/car-market-1/2022-03/2022-new-car-prices-rise-by-up-to-26-per-cent/
The electric cars are less complex to produce and maintain than their petrol equivalents.
The software & interface level is complex for both ICE and E cars but similar to implement in a build once developed.
So now if you go one step beyond the historical ICE cars into modern electric equivalents what’s happening to enable something like a Nissan Leaf or Renault Zoe to sell for just under £30,000?
Front loading of all the development costs? differences in financing? construction material scarcity? absorption of grants into profits? demand pressure from supplying a new market from very low base levels?
I’ve been scratching my head over this one for a few years & beginning to think it’s some kind of parallel of what we have witnessed in the mobile phone market with ever more gizmodified units being used to leverage premium pricing.