Why do modern cars cost so much?

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By COREY EBERHARDT President CoaterZ Less than a decade ago, a person could buy a basic new car for less than $20,000. Today, you would have a hard time finding that same basic vehicle for less than $35,000. That’s a huge jump.

What happened to cause such an enormous price increase? No single answer There is no single answer. Rather, a number of factors have come into play at the same time, and the result is some serious sticker shock.

It would be hard to pinpoint a time in history where such an enormous price increase has happened before. What factors? Here’s a list: TECHNOLOGY ADVANCES: Modern cars and truck are rolling computer systems.

Even the most inexpensive cars contain dozens of electronic gizmos that control almost everything -- engines and transmission, climate control, and entertainment systems. They even monitor tire pressure, fuel economy, emissions, operate touchscreen displays, wireless smartphone integration, voice recognition, and navigation systems. SAFETY ADVANCES: Modern vehicles have safety equipment and systems that were unimaginable 20 years ago: automatic emergency braking, lane assistance, cruise control, blind-spot monitoring, multiple cameras, parking sensors, and more.

These features can’t work without sophisticated – and expensive -- radar sensors, cameras, specialized wiring, sophisticated software, and powerful computers. GOVERNMENT REGULATIONS: Modern automotive engines must meet stringent emissions standards, and they must deliver improved fuel economy at the same time. To meet those standards, automakers have had to invest billions to develop turbochargers, direct fuel injection, advanced catalytic converters, particulate filters, and new and complex transmission systems.

Electric vehicles operate with large battery packs, each of which cost thousands of dollars. NEW MATERIALS: Modern vehicles contain more aluminum, high-strength steel, composites, plastics, and light alloys. Those things increase fuel economy and improve collision protection, but they cost more than the traditional steels used in cars of the past.

Supply chain disruptions experienced during and after the COVID-19 pandemic also drove up prices for everything from steel and aluminum to computer chips and electronic components. Although supply chains have largely recovered, many of those higher costs remain built into today's vehicles. MANUFACTURING COSTS: In days gone by, cars were turned out by unskilled or semi-skilled workers using relatively unsophisticated factory equipment.

Today’s cars are built by highly skilled workers using highly sophisticated (and expensive) robotic systems. Manufacturers have to invest billions in new R&D facilities and modern factories to remain competitive. RESEARCH AND DEVELOPMENT: Today’s automakers have to spend billions on research and development to constantly improve crash safety and fuel economy, and to develop such new technology as electric drivetrains.

All of that requires new software capable of supporting those efforts. There is only one way to recover those major costs, and that is through vehicle sales. CONSUMER TASTES: Buyers may complain about higher prices, but they also demand features that used to be reserved for premium brands.

Those who buy cheaper vehicles still want such features as heated seats, sunroofs, premium audio systems and advanced climate control systems. That puts pressure on auto manufacturers to include more features on even their lower-priced lines. NEW MARKETING STRATEGIES: Manufacturers have increasingly shifted their product strategies toward their higher-profit lines.

Many automakers have discontinued their inexpensive compacts in favor of SUVs, crossovers, and fully-loaded pickups. These are the vehicles that generate the biggest profit margins. Fewer low-cost models and more luxury models mean higher per-unit prices and higher per-unit profits.

Even more true for pickups All these factors are even more clearly demonstrated when it comes to pickup trucks. In the old days, pickups were thought of as work vehicles. Most of them were austere and devoid of frills -- vinyl seats, hand-cranked windows and, usually, standard transmissions.

Not so today. Many modern pickups have leather upholstery, touchscreen displays, premium sound systems, heated and cooled seats, and interiors trimmed with wood or aluminum. Today’s loaded pickup truck can cost $80,000 or more.

The result of all this: vehicles that are safer, cleaner, more reliable, and more technologically advanced. It also means longer vehicle life spans, with many modern cars and light trucks routinely exceeding 200,000 miles. The result Overall, the result is this: vehicles that are much more expensive, but which last much longer.

You’re going to spend more up-front, but you won’t have to trade up near as frequently. So... adjust your thinking a bit.

You're going to pay more up front, but just adjust to that by planning on keeping your vehicle for a longer period of time. After all, modern-day cars and trucks are better built, and they can go a lot further for longer stretches of time. Protect the paint.

Upgrade things to make that vehicle your own. Be faithful with maintenance. CoaterZ can help you with all that.

Visit the website at CoaterZ.com , or stop by for a chat and a tour. -0- CoaterZ is your partner when it comes to getting every mile out of your new car or truck. We offer the highest-quality ceramic coatings, Paint Protection Film (PPF) and other products installed by highly-trained technicians to protect your vehicle’s finish for years to come.

Three locations to serve you: 2824 Alt19 Palm Harbor, FL 34683 (727) 935-4621 www.CoaterZ.com 16235 N Florida Ave. Lutz, FL 33549 (813) 467-8149 https://coaterz.com/lutz/ 2321 Bee Ridge Rd. Sarasota, FL 34239 www.Coaterz.com/Sarasota (941)297-0125