To the Editor:
Inflation or greed? In 1967 when I was 23 I bought my first new car. A 1967 Pontiac LeMans, V8, automatic, stereo & AC, full power for $3,000. In today’s value that would be $27,500. I drove it over 100,000 miles with routine maintenance, and I could fix most things under the hood if needed.
I’d be perfectly happy driving that car today. I don’t need lane change warning, backup mirror, 4 USB ports, touch screen controls, synchronized A/C or even cruise control. Average price of a new car today is $47,500, or 70% higher than today’s value of that Pontiac.
In 1974, I purchased our first new house in northern NJ for $44,000. A 3 bedroom, 2 bath, 1/2 acre of land. In today’s value that’s $278,000. Today’s Zillow value for that same house is $550,000 – almost double the inflated original price.
In comfortable retirement after a long career in well-paying management positions, I still don’t think I would be willing to pay $47,500 for a new car or $550,000 for that same house. A week’s vacation in a nice motel at the Shore for a family of four with room, meals, sightseeing could cost well over $3,000.
The federal government has been aggressive with gas mileage targets in the auto industry. It seems to me there also should be targets for a mix of low-cost transportation vehicles in their product line. Stripping out extra frills that have been made standard rather than optional equipment could take thousands off the price.
Revisit mandatory car regulations. For housing, the federal, state and local governments need to find ways to increase affordable housing and force builders to devote portions of construction areas to modest homes – not MacMansions. If not, a new car or a new home will never be a reality for young families.