What a difference a century makes
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by Jeff Snyder
MOUNT AYR, Iowa — In 1925 a new Ford car could be purchased for the grand total of $585 dollars. Fast forward a century or so and the same car/ truck will set you back a staggering $50,364, the average price of a new car in 2026. Even if adjusted for inflation, these are startling numbers.
According to the established budget rules in 2026, the average family should plan to invest no more than 10 to 15 percent of their take home income for the purchase of a new vehicle. Of course that figure varies depending on each individuals needs and the current availability, but it is clear at a glance that something is broken in the new car sweepstakes.
In an effort to combat these continuing increases in pricing the automobile industry has turned to creative financing and special terms in an effort to extend the buying option to the average American. Car loans of 72 and even 84 months are becoming common place in an effort to minimize the monthly payment sticker shock of modern cars and trucks.
What does that mean in practical terms? That means that given the vast distances that need to be traveled in Ringgold County, it is common for driver to put 20,000 to 25,000 miles a year on their cars. After eight years, the vehicle will have between 160,000 and 200,000 miles on it. Just in time to replace the vehicle.
When Henry Ford first got into the automobile business one of his early goals was to make a car that was affordable for the masses. Rather than scrimp on quality or product reliability Mr. Ford turned his sights on getting the cost out of the manufacturing process enabling him to pass the economies of scale onto the average buyer.
Mr. Ford did not invent the automobile, that credit goes to Mr. Benz of Mercedes Benz fame. What Mr. Ford did do was to streamline the process of manufacturing that echoes in the manufacturing process to this day.
Not everyone is aware that Iowa used to have its own automobile manufacturing facility in the Des Moines in the later part of the 1920’s. This facility was responsible for the production of Ford’s popular Model T that when so equipped could be had for as little as $300.
Somewhere around 1930, Ford relinquished its manufacturing responsibilities to the folks in Dearborn, Michigan where manufacturing of Ford products still exist (among other places). The Des Moines facility was eventually converted into administrative offices before being replaced completely.
The United States is an extremely large country by way of geography and necessitates personal transportation. This need is further amplified by those living in rural communities such as those in Ringgold County. A car or truck here is not a luxury it is an absolute necessity.
Opinions vary to see why prices have increased. One generally accepted theory is that government interference is one of the primary culprits. The government for its part drove prices upward due to increased demands on the auto industry to improve internal combustion engine performance relative to emissions and specific pollutants.
Later, consumer safety became a front and center issue when passive restrain systems were deemed a requirement which ultimately led to air bag equipped vehicles which dramatically increase unit costs across the board. The results were equally outstanding. Eventually the advanced computer systems contained in modern automobiles necessitated high speed data chips largely produced overseas which further increased the costs of manufacturing.
In 1970 there were 900 fatal automobile accidents in the state of Iowa. By 2025 that number dropped to 300. There is no question that automobiles are better safer and more reliable that they ever have been. The problem is now it has become harder to afford these advances.
The urban consumer is clearly a different situation. Sophisticated public transportation, ride sharing companies and even autonomous taxis are is testing right now. In cities like New York, Los Angeles and even some smaller metros, having a car is not only unnecessary, but increasingly it is considered a liability. Parking is impossible, insurance cost are astronomical and fueling stations are at a premium. What effect will this have on rural Americans and Ringgold County residents in particular? Most likely more fiscal pain.
As manufactures continue to experiment with alternative fuels and cleaner transportation alternatives the rural consumer will become less of a factor in the manufacturing decisions being made all over the world. Already manufacturers are leaning heavily into the electric vehicles despite disappointing sales results and the elimination of federal tax credits. The problem is, automobile manufactures are not exactly nimble. Decisions made today are not played out for five or six years, so commitment is necessary to stay ahead of the demand side of the equation.
The impact for the short term on rural areas remains to be seen. One thing is clear, however, the future is now. Take care of that vehicle in your barn you just might need it.
your gonna need it.
