Daily Archives: March 4, 2016

2016 Car Show

2016 Car Show

The 2016 Car Show wasn’t all that impressive.   When I think of new car shows, I think of prototypes, experimental cars, and not simply and extended multi-manufacture showroom.  I can see that by going down the street to Van Bortel Chevrolet.

What amazed me most is how much the price of cars has increased.  In about 8 years, the price of cars has doubled.  I’m basing that on my Grand Prix and our Toyota Corolla.  At that rate, 72/8=9.  That means the price has gone up 9% per year, while the inflation rate has been 2.5% and 3.2% per year.

When you consider many of the U.S. car manufacturers received bailout money from our tax dollars, you see that the socialistic move of bailing out the car manufacturers has resulted in huge increases in automobile costs.

The iron is some of the prices just didn’t make sense.  A Hyundai sedan that cost more than a Mercedes Sedan is an example of something that just didn’t make sense.  Electric cars with life-time operating expenses greater than the cost to operate a gasoline powered car.  (Batteries aren’t cheap, and neither is electricity.)

It was a bit of a let-down.  The price of new cars was an even bigger let down.

copyright 2016 db walton

New Car Show 2016

Imagine if the electronics industry were to take over car manufacturing.  The price of cars would come down slightly, but the exchange would be faster, more powerful and more economic cars.  Let’s talk my Grand Prix…

  • 2007 cost $23,000
  • To replace with like model GM today cost $47,000
  • MPG – 22 city, 27 freeway

Now, let’s take a computer…

  • 2007 state of the art PC with 512GB hard drive space and 4GB RAM, 2.40 GHz, dual core – $1200
  • 2016 state of the art PC with 2TB hard drive space, 16GB RAM, 4GHz, quad core – $1200

In other words, the computer’s memory increased 4x, the ram 4x, the speed and processor cores doubled  and the cost remained the same.  That would like a 4-door mid-sized, fully loaded sedan still costing $23,000, but the horse power doubled, the top speed doubled, the gas mileage quadrupled, and it’s now an 8 passenger limousine.