Abstract:This report details how new vehicle prices have changed historically. The main timeframe of interest is 1975 to 2001, although analysis of data before and after this period is also presented. The analysis shows that there have been significant price increases over time, but also significant variability across vehicle classes and time periods. Two price measures were used in the analysis: Manufacturer's Suggested Retail Price (MSRP) and Average Transaction Price (ATP). The data suggests these two measures are closely related and the same conclusions can be drawn from both. The historical record suggests that while compliance costs to meet new vehicle regulations have been significant, particularly for upfront costs, non-regulated quality improvements and price changes related to factors outside the vehicle itself have generally outpaced these regulatory costs. New vehicles have more or less maintained the same affordability index for consumers through the years, even as safety, emissions and fuel economy regulations have become a greater share of the overall vehicle cost. The important consideration for consumers is how good of a value automobiles and light trucks have been historically with respect to other goods and services. This report finds that despite relatively costly regulated emissions control and safety improvements to new vehicles, incomes have kept pace with prices.