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Why does a car cost less in 1925?

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The entire economy cost much less in 1925. Average paycheck was about $12.00.

Average home cost about $2,500. Gasoline was 5 gals./$1.00

A Model T Ford cost around $300 in 1925. That is equal to around $3,400 in todays money. That may sound cheap but you have to realize it did not have P/S, P/W, P/B, A/C, Radio, A/T, Air Bags, Seat Belts, or any other of the equipment we take for granted on a modern car. It was basic transportation with a top speed of 40-45 mph.
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