So, I stumbled across some data that just blew my mind. Apparently, the average real price of cars has gone up like crazy over the past few decades. Seriously, look at this chart:
Chart: Look What's Happened To Average Real Car Prices
Can you believe that? Cars used to be so much cheaper! I mean, sure, inflation and all that, but still.
Anyway, I also found this other thing that might interest you. It's about current car prices. Check it out:
Latest Car Price Trends (Car Prices December 2020)
Okay, okay, let's back up for a second. I know this all sounds a little dry, but hear me out. There's something funny about this data. I promise.
First of all, let's look at those real car prices again. See how they spiked in the late 70s and early 80s? If you were alive back then, you might remember why. It was because of something called the "energy crisis." To put it simply, there wasn't enough oil to go around, so the price of gasoline shot up. And since cars use gasoline, car prices went up too. It's funny how things are connected, isn't it?
But here's the thing: even after the energy crisis was over, car prices just kept going up. And up. And up. Why? Because we like our fancy cars, that's why. We like our leather seats and our satellite radios and our heated cupholders. And car manufacturers know that. They know we're willing to pay more for those things.
Which brings us to that table of current car prices. What do you notice about it? Well, first of all, there are a lot of expensive cars on there. But that's not the funny part. The funny part is how they're marketed.
Have you ever noticed how car commercials always talk about how affordable their cars are? "Get a brand new SUV for just $50,000! That's practically a steal!" Okay, maybe they don't say it quite like that, but you get the idea. They make it seem like you're getting a great deal.
But if you look at that table, you'll see that $50,000 is actually on the low end of things. There are cars on there that cost twice as much. And yet, car commercials will still try to convince you that you're getting a good deal. It's like they think we're stupid or something.
But you know what? Maybe they're right. Maybe we are stupid. After all, we keep buying those expensive cars, don't we? We keep shelling out more and more money for things we don't really need. And car manufacturers know that. They're laughing all the way to the bank.
But hey, I'm not judging. If you want to spend your hard-earned money on a fancy car, go for it. Just don't let the car commercials fool you.
Anyway, that's my spiel on car prices. I hope you found it somewhat amusing. And if you're in the market for a new car, well, good luck with that.
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