[W126 Coupe] SEC Spec sheet

[Robin Jones]

There is debate about the accuracy of inflation measures. However, the 
inflation rate is calculated to represent a cross section of consumer 
spending, including staples like food and shelter as well as apparel, 
appliances and other items. Some of these items are actually falling in 
price, like apparel, appliances, home electronics and partly offset the rise 
in items like housing and energy. The main inflation measure reported in the 
news called the Consumer Price Index (CPI) is developed by the Bureau of 
Labor Statistics -- the Fed uses this number in forming monetary policy.

In my calculation, however, I used an inflation measure targeted at price 
fluctuations in new car sales. Since 1980, new car prices have generally 
advanced more slowly than the overall rate of inflation measured by the CPI. 
The average annual growth of new car prices over the last 25 years has been 
about 1.7%, while the overall inflation rate has averaged 3.5%. When you 
take out the high-inflation 1980s, car prices have not changed much since 
1990 (+0.7%) and CPI inflation has been running at about 2.9%.

For cars, average prices have actually fallen in 6 out of the last 7 years.

Okay, that's enough of that. All that is important about prices and SECs to 
me right now is how much am I going to have to save for a new paint job and 
the other miscellaneous repairs my poor car needs this year.

Happy motoring,

Robin Jones
'89 560SEC


----- Original Message ----- 
From: "Dan Landiss" <dan at landiss.com>
To: "Mercedes Coupes Mailing Lists" <mbcoupes at mbcoupes.com>
Sent: Thursday, March 24, 2005 10:36 AM
Subject: Re: [W126 Coupe] SEC Spec sheet


> Robin Jones wrote:
>
>>     Actual MSRP Adjusted MSRP
>>
>>      1986 $58,700 $72,898
>>      1987 $68,000 $81,660
>>      1988 $75,850 $89,483
>>      1989 $79,840 $92,435
>>      1990 $81,500 $93,123
>
> What that tells me is that the Fed consistently understates the true rate 
> of inflation.
>
> -- 
>
> -----
> "He who joyfully marches to music in rank and file has already earned my 
> contempt. He has been given a large brain by mistake, since for him the 
> spinal cord would fully suffice." --Albert
> Einstein