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2013/03/23 17:58:57
Flighter

The Cost of a Rally Pack Escort in Sep 1977 Compared to Nov 2012

It's easy to look back on Escorts as being the cheap cars of their day.  The Rally Pack was an aspirational model released around mid-1977, so to see just how affordable it was back then, I took a look at the price and net income of the average male worker in Sep 1977.
 
The car itself cost $5152 (including sales tax), and adding a couple of reasonable extras, i.e. sports suspension ($30), 70 series tyres ($40) and a tinted, laminated windscreen ($89) brings the total to $5311.  These figures were taken from a road test of that exact model in a magazine published in Sep 1977.
 
From the Australian Bureau of Statistics I learned that the average male weekly wage for the Sep 1977 quarter was $204.60 a week, or $10,639.20 a year.  Assuming no deductions, the income tax on that amount for the 1977-78 financial year was $2,301.65, leaving $8,337.55 net.  So, a Rally Pack with a few extras cost 63.7% of the net disposable annual income for the average male worker in Australia.  Doesn't sound cheap to me.
 
By way of comparison, you'd need to spend about $37,939 today to use the same percentage of your net income.  This is based on the latest Nov 2012 average weekly male wage of $1489.10, and annual tax payable of $17,874.29 (incl. medicare levy).  That puts the price and specifications of todays cars into some perspective for me, especially in the small car market the Escort once occupied.

WTB: Recaro seat - any condition considered
 
 
3 comments Leave a comment
gtv6capri
$38k is about what an XR5 focus cost 2 years ago, I guess its all relative.  Houses have gone nuts by comparison.  in 1988 I bought a 3 br house in Springvale for $75k exactly 3 years pay (warehouse manager).  Eqivalent house in blue collar area today (Pakenham etc) would be $300k, 5 to 6 years warehouse managers pay ( my springvale house is now worth $435k)
2013/03/23 18:36:57
wombat2509
I started work at the Bank of New South Wales in 1976 at 18 my first take home pay for 2 weeks was $186, not a lot left to buy new anythings
2013/03/23 20:37:53
Matt75
But beer was very cheap back then though!
 
Matt
2013/03/23 20:55:52

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