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Leith Cars Blog

Good News Everyone: Cars Aren’t More Expensive

In the course of our vigilance over the Twittersphere, we’ve noticed that many people are concerned about the rising prices of new cars. That is to say, there is a perception that cars are getting more and more expensive, and when you think about it, maybe that isn’t surprising.

The economy is slowly stabilizing, which means people who were holding off on buying a new car are ready to start shopping around again. As demand rises, so does price. At the same time, car manufacturers are packing more technology into their new models and using more high quality materials, both of which raise production costs and ultimately increase the number on the sticker. Given some thought, you can justify why new car prices are going up.

Or you could look at the numbers over time and realize that actually they aren’t. That’s what Car and Driver did recently. In a series of infographics, they explain that not only do cars cost relatively as much as they did twenty years ago, but there are also certain models that are generally less expensive than they used to be. For instance, a new Volkswagen Jetta costs two thousand dollars less than it did in 1985 (with prices adjusted to 2014 USD). A Dodge Dart is only priced fifty-six dollars higher than its 1980s equivalent, the Dodge Shadow. Most telling of all, compared to 1995, a new car purchase accounts for almost exactly the same portion of the US median household income.

You should look at the full charts on Car and Driver’s blog, seen here. At Leith Cars, we think having well-informed customers is essential to helping everyone drive away satisfied. If you want to talk more about financing a new or used car, visit any of our dealerships in Raleigh, Cary, Fayetteville, and everywhere in between.