re: I bought a used car for $12,500 this last year. The same price I paid for a new one in 1989. Only the one I bought this year has anti-lock breaks, fuel injection, heavier suspension, side impact panels, keyless entry and a safety record that is 3 times better than that 1989 car I had (still have as a third car). Neither need a tuneup until 100,000 miles (as opposed to those nice big heavy American cars the author remembers as superior)
You didn't stipulate how much more mileage was on the used car. You would need to add this depreciation back on to get a fair comparison of prices. In any event, if these newer models are safer, more fuel efficient, or require less maintenance, those cost savings should show up in the weights for fuel consumption, auto repair, auto insurance, and medical costs. Counting those implied savings in the car causes one to double-count savings, real or not. On the other hand, one only need compare auto sales to see how much substitution may be going on, if any. For the most part, the substitution appears to be lease versus purchase, in which case, the owner normally returns the car back to dealer, and for luxury and SUV versus lower tier. At the lowest tier, the substitution appears to be Korean cars IMO. In any event, one should be comparing apples to apples, new cars to new cars, and old cars to old cars. |
