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A comment on The Real Cost of the 2008 Financial Crisis. Parent comment

Re:The Real Cost of the 2008 Financial Crisis by taurath on Tuesday September 11, 2018 @05:08PM (#17963377)
To be fair though, safety regulations requiring heavier vehicles on top of requirements for better fuel economies have cut the margins a bit, but the prices have not raised much if at all. The 1995 Honda Civic LX was $14,160 in MSRP, which is ~$22k in 2018 dollars. There are plenty of vehicles for less than that.

You might be referring to the higher margins that SUVs get, which are getting more and more popular in the US... but TBH I'm not sure where you get the idea that car prices have been inflated.

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Re:The Real Cost of the 2008 Financial Crisis by smogcutter on Tuesday September 11, 2018 @08:18PM (#17964589)
This got me to dig into historical prices a little, and turns out I was even more wrong than that. Looks like car prices were pegged to inflation until about 1997, where they level off while overall CPI keeps growing:

https://fred.stlouisfed.org/series/CPIAUCNS

https://fred.stlouisfed.org/series/CUUR0000SETA01?utm_source...

That said, loan terms are lengthening and subprime loans are a large and growing part of the market. That has to be buttressing prices. I really can't back this up, but my suspicion is that over the long term, available credit has helped discourage auto makers from simply making cheaper cars.

Today you can buy a cheap appliance computer for a price that would've been unimaginable in 1995. And you can buy a cheap appliance car... for about the same price as in 1995. Obviously the two markets don't work the same way, but there's still something odd about that.

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