$38,400 is the price of a new car in 2020.
$3,500 was the price of a new car in 1970. $23,500 in today’s money.
Cars today are $14,900/63% more expensive?

Why is this happening?

First off, let’s look at value to the car.

The average car lifespan in 1970 was 5.6 years and 100,000 miles.
Today, it’s 12 years and 200,000 miles on average.

Someone in 1970 was paying $0.23 per mile driven and $4,200 per year driven.
Today, it’s $0.19 per mile driven and $3,200 a year.

A 17% drop per mile and a 24% drop per year.

Second, let’s look at miles per gallon and price of gas.

Cars in 1970 got 11.9 miles per gallon.
Cars today get 24.9 miles per gallon.
1970 had gas prices of $0.36 sense or $2.48 in today’s money.
2020 has average gas prices of $2.20 per gallon.

Cars today use 53% less gas per mile driven.
Let’s also just say gas prices were the same at $2.50 a gallon for a moment.
It’d cost $2,100 to go 10,000 miles in a 1970 car or $0.21 a mile.
It’d cost $1,005 to go 10,000 miles in a 2020 car or $0.10 a mile.

A 1970 car per mile driven with gas mileage & price of the car to lifespan is $0.44 a mile.
A 2020 car per mile with gas & lifespan is $0.29 a car.
35% cheaper.

And new cars today have other things cars 50 years ago didn’t.

They are vastly safer.
Heated & AC cars weren’t in all models.
They have better sound systems.
They have cameras and sensors for safer actions.
They look and feel nicer.

Cars today are better than 50 years ago and in value to mile driven, they are much cheaper to use due to lifespan and mileage.