**The High Cost of Cars: A Look at How Prices Have Skyrocketed Over Time**

Buying a new car can be a stressful experience, but it wasn't always this way. In fact, cars were once affordable for the average American.

Henry Ford sold the Model T for just $825 in 1908. When he improved his assembly line process, the cost went down to an astonishing $300 - which is equivalent to around $4,300 today. This made cars something that pretty much anyone could afford.

The early access to transportation changed the way Americans lived and grew industrialization meant the birth of the middle class. Fast forward to 1950, America was doing great, with wages doubling and tripling compared to 1938. The median income in the US was around $52,000 a year, which is equivalent to around $59,000 today.

In 1950, the base model F100 pickup truck could be bought for just $1,300 - which is around $14,000 today. However, when adjusted for inflation over time, the price of a base Ford F series truck has nearly tripled in its 70-year history. It's not alone; most car models have seen an increase in price by about double.

Let's take a look at how cars have changed over time. The base model 2018 Ford F150 compared to the 1948 F-1 is a stark example of this. The F-1 had just 95 horsepower and no armrests, radio or dome light until 1953. In contrast, the F150 has a 6-speed automatic transmission, 3.3-liter V6 engine with variable cam timing making 290 horsepower, independent front suspension, power steering, air conditioning and an aux jack.

But it's not just about features; safety has also improved significantly over time. An IIHS video comparing the 1959 Chevy Bel Air to a 2009 Chevy Malibu shows how the old car completely collapses in the collision, while the driver survives with some damage to the vehicle.

The price of cars may have increased, but the value they offer is still there. The Mitsubishi Mirage, one of the cheapest cars on sale in the US, offers standard features that would have blown Henry Ford's mind - including a touchscreen, rear view camera and attractive chrome grille accents.

However, the problem remains that many people can't afford new cars, even with rising median incomes. In fact, the price of a pickup truck has outpaced the median income by a factor of two over time. Buying a used car is often not an option either, as more people are signing up for long-term loans to finance their purchases.

These long-term loans can be brutal, with interest rates of 25% or higher in some cases. The fact that people take on these loans because they don't have any other choice is a worrying trend.

It's clear that the high cost of cars is not just about affordability; it's also about accessibility and the necessity of car ownership for many people. As we move forward, manufacturers need to consider making super-cheap cars that may crumble in an accident but are affordable for all.

What do you think? Is the higher price worth it, or should manufacturers make super-cheap cars that prioritize affordability over safety? Let us know your thoughts!

Follow Donut Media on Instagram @donutmedia and follow me on Instagram @nolanjsykes. If you want to know more about Henry Ford, check out this episode of WheelHouse; he was a weird guy! And if you wanna know more about cars that can't be afforded regardless of median income, check out this episode of Up to Speed on McLaren.

Wear your seatbelt, see ya later!

WEBVTTKind: captionsLanguage: enBuying a new car sucks.Yeeeehaw! Do the stanky leg, do-Dealership haggling aside, the most stressfulpart about buying a car is usually figuringout for paying for it.Cars are expensive, usually the most expensivething you own.But it wasn’t always like that.Here’s how cars got so pricey.Henry Ford sold the Model T for $825 in 1908.When Ford improved their assembly line, thecost went down to $300.When adjusted for inflation, I’m gonna besaying that term a lot, that’s the sameas going from $23,000 to 4300.Henry Ford’s assembly line made the carsomething pretty much anyone could afford.Early access to transportation changed theway americans lived, and growing industrializationmeant the birth of the middle class.Fast forward to 1950, and America is doinggreat.The Post-war economic boom doubled and eventripled wages compared to 1938.When adjusted for inflation to today’s money,the median income in the US was around $52,000a year.In 1950, The base model F100 pickup will setyou back around 1300 dollars, or about 14thousand today.That’s a great deal for a brand new truck,a Ford F series no less.When we look at the F100’s lifespan, wesee that when adjusted for inflation the pricefor a base F series truck has nearly tripledin it’s 70 year history.And it’s not alone.When compared against the Honda Civic andeven a base Mercedes sedan, pretty much everymodel of car has seen an increase in priceby about double.Let’s compare the features of a Base model2018 Ford F150 to that of a 1948 F-1.When new, the F-1 made 95 horsepower and thatwas about it.The F-1 didn’t get armrests , radio or adome light until 1953.The F150 has a 6 speedautomatic transmission, 3.3 liter V6 withvariable cam timing making 290 horsepower,Independent front suspension, power steering,air conditioning and most importantly, anaux jack.(Bleed by Meshuggah)A production vehicle that had every featurepresent in the 2018 F150 would cost a fortunein 1948, even simple technology like powersteering wouldn’t be available to the publicfor another three years.And that’s just everyday features.That base2018 F150 get a decent combined 22 miles pergallon thanks to that variable cam timing.Old flathead engines like those in the F-1,would be lucky to hit the mid teens.Old cars were absolutely horrible on safety.Car safety as a whole needs it’s own episodebut I just want to look at this IIHS videocomparing the 1959 Chevy Bel Air to a 2009Chevy Malibu.See how the old car completely collapses inthe collision?How the roof pillars lose all integrity, andthe steering column hits the dummy in theface?That guy is dead for sure.The Malibu on the other hand, is completelytotalled, but the driver survives.When adjusted for inflation a base Malibucost around 25 grand, while the Bel Air wouldbe about 22 grand.The Bel Air is pretty sick, I won’t lie,but I don’t think the 3000 dollars you saveis worth being bludgeoned to death by yoursteering wheel.Even the most basic cars today for lower pricesare a way better value.Take the Mitsubishi Mirage, one of the cheapestcars on sale in the US.At it’s most basic, the list price is $13,395.Even at that low of an entry fee, it has standardfeatures that would have blown Henry Ford’smind.BwoooaaahIt’s got a touchscreen, rear view camera,andattractive chrome grille accents.The Model T can’t touch this thing.Okay that’s great, Nolan, new cars are anawesome value compared to what my great grandpawas driving.But I still can’t afford one.Well neither can I.But why not?In 1950 the median income, when adjusted forinflation, was $52,000 per household.Today, the median income is $59,000.Looking at the median income next to the priceof the F150 side by side from 1950 to now,the price of a pickup increased 14,069 dollars.That’s outpaces the median income by a factorof two.Going back again to 1928, buying a Model Tcosts 300 bucks.So that’s about 21% of your annual incomegoing towards the purchase of a new car.Comparing that to today, using a base, baseFord F150, it costs about 47% of your yearlyhaul.But if you get a Supercrew cab, you know,a truck that could actually hold your familywith, that takes nearly 60 percent.It takes twice as much money to buy a newcar as it did 60 years ago, which is finebecause new cars are better.But the problem is wages didn’t keep upwith the rise in prices.Okay Nolan, just don’t buy a new car then.A used car is just as good and more affordable.No problem.Yeah I agree, but the problem for a lot ofpeople is saving up a big enough chunk tobuy a used car in the first place.Instead of buying a used car outright, moreand more people are signing up for long termloans.A 74 month loan on a two year old car is notuncommon, and loans up to 96 months are gettingmore popular.As of the fourth quarter of 2016, loans lasting73 months or longer made up 31 percent ofauto loans given out by Credit Unions, comaparedto 12 percent in 2009.And these loans don’t depreciate with thevalue of the vehicle, meaning by the timeyou’re done paying it off, you’ve payedway more than what the already depreciatedcar was worth.In most places, especially small towns, carsare an absolute necessity in our daily life.People will take on these brutal loans becausethey don’t have any other choice.And with stories coming out about long termloans with interest rates of 25%, it feelswrong.Hit that subscribe button so you never missan episode of WheelHouse.What do you think?Is the higher price worth it, or should manufacturersmake super-cheap cars that crumble in an accident?Follow Donut Media on Instagram @donutmediaand follow me on Instagram @nolanjsykes.If you want to know more about Henry Fordcheck out this episode of WheelHouse, he wasa weird guy.And if you wanna know more about cars youcan’t afford regardless of median incomecheck out this episode of Up to Speed on McLaren.Wear your seatbelt, see ya later :)