* Lower Labor Costs: Wages were substantially lower in 1925. Manufacturing a car involved significantly more manual labor than it does today, so lower wages directly translated to lower production costs.
* Simpler Technology: 1925 cars were much simpler mechanically. They lacked the sophisticated electronics, safety features, and complex engineering found in modern vehicles. Fewer parts and simpler manufacturing processes meant lower costs.
* Smaller Scale of Production (Initially): While mass production was beginning to take hold, it wasn't as refined as it is now. The economies of scale weren't as fully realized as they are today, meaning that per-unit costs were higher than they would become later, but still significantly lower than today's costs. Later in the decade, massive economies of scale from the assembly line would drive costs down further.
* Lower Material Costs: The cost of raw materials like steel, rubber, and other components used in car manufacturing was considerably lower in 1925.
* Less Regulation and Taxation: Government regulations and taxes on vehicle production and sales were much less stringent in 1925. This reduced the overall cost of bringing a car to market.
* Lower Research and Development Costs: The investment in research and development (R&D) was far less substantial than it is in the modern automotive industry. Modern cars require immense R&D spending on safety, fuel efficiency, emissions, and advanced technologies.
* Different Consumer Expectations: Consumers in 1925 had lower expectations regarding features, performance, and longevity. A car was a much more basic form of transportation compared to today's vehicles, which often incorporate luxury and technological advancements.
In summary, the lower cost of cars in 1925 reflects a simpler economy, less advanced technology, lower wages, and less stringent regulation compared to the complex and highly regulated automotive industry of today.
