New cars: A more affordable affair

It may be a common reaction to bemoan new car prices, and it’d probably be equally common to assume vehicles are becoming increasingly expensive, but, in reality, this is far from the case. New cars have never been cheaper.

A Ford Laser back in 1983 had a sticker price of around $7005 -- staggeringly cheap by today’s standards. The Laser’s distant relative and current equivalent in the Ford range, the Focus, is priced from $20,290. On the surface, almost three times the price.

Similarly, the locally made Holden Cruze is priced from $19,490, while its 1983 equivalent commanded $6670 from budget conscious motorists. The Mazda 323 that once filled the role of today’s ever popular Mazda3 cost $7655 back then; its latest counterpart is priced from $20,330.

The real measure of the affordability of these cars is not their sticker price, but rather the relationship between that and average earnings.

To put new car prices into perspective, back in 1983, the average annual earnings for an adult in Australia was approximately $17,600. That amount has inflated to $57,470. Simple calculations show therefore it would take the average contemporary car buyer six weeks less to purchase one of the small new cars mentioned above compared to 1983.

And that’s even before you take into account differences in standard equipment levels. The 1980s cars offered commuters minimal features in terms of comfort, driveability, fuel consumption, performance and most importantly, safety. Air conditioning an expensive option, if available at all.

All new cars mentioned here offer air conditioning, power windows, various in-car entertainment systems, a suite of airbags and a host of other safety equipment as standard.

motoring.com.au recently touched on new car affordability in a Small Car infographic. that looked at how the small car segment has really taken over the mantle of the preferred size for a new car in Australia.

If your thinking of buying and a certain car car has caught your eye, then there are a number of handy research tools at your fingertips to help in the decision making process. Carfacts.com.au may be a worthwhile destination to visit before handing over your hard earned cash. www.carfacts.com.au provides prospective owners with a comprehensive report detailing a car’s history including whether it has ever been reported as stolen, if it has been written off and if it there is finance owing on the vehicle.

Reports cost $29 and are returned by email within 15 minutes, a small investment for complete peace of mind motoring.

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