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

2013/03/23 17:58:57
Flighter
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.
2013/03/23 18:36:57
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 20:37:53
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 20:55:52
Matt75
But beer was very cheap back then though!
 
Matt

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