Why are cars so expensive these days?
Jim Kayalar, DBA(ABD), MBA, (L.I.O.N)
C- Level Executive,Serial Entrepreneur,Management Consultant,International Author,Professor of Business, Photographer (RET)
Why are cars so expensive these days? Not talking about self-driving or Electric cars. How can consumers justify paying $50,000, $75,000, even $100,000 plus for a car? There are houses that cost as much.
All cars have the same basic components. They used to have about 2,500 parts. They still have about 2500 parts plus all the electronics parts. The electronics components consist of gimmicks like adjusting your seat electronically when you enter your height on the 12-inch LCD control panel, audio, video entertainment systems, games, front-back, and side cameras instead of mirrors, plus all kinds of other creature comforts such as auto trunk closure, etc. Some cars come complete with the Apple IOS or Android operating systems.
The auto industry seems to have changed the business they're in from providing transportation solutions to customers to offering a transportation experience. An experience can always be sold at a higher price than a solution.