As I noted in an earlier blog entry, nearly every car is “loaded” these days. A quarter-century ago only a minority of cars were equipped with things like power windows, power locks, and cruise control, and even air conditioning was rarely standard. These days all of these features, and then some, are standard on nearly every car.

One big reason why: price. Consider a few different options.

Air conditioning

1987: 688 (Ford Escort)

1997: 795 (Ford Escort)

2007: 910 (Ford Focus)

Power windows

1987: 296 (Ford Tempo)

1997: 340 (Ford Contour)

2007: 295 (Chevrolet Aveo)

Cruise control

1987: 176 (Ford Escort)

1997: 215 (Ford Taurus)

2007: 250 (Dodge Caliber)

Alloy wheels

1987: 293 (Ford Escort)

1997: 265 (Ford Escort)

2007: 295 (Ford Focus)

Power sunroof — offered on cheaper and cheaper cars

1987: 741 (Ford Taurus)

1997: 595 (Ford Contour)

2007: 625 (Ford Focus)

Base price of a Ford Focus or Ford Escort four-door hatch

1987: 7,621

1997: 11,430

2007: 15,335 (before a $2,500 rebate)

Base price of a Lincoln Town Car

1987: 23,051

1997: 37,950

2007: 42,900 (before a $7,000 rebate)

While the prices of cars have gone up quite a bit over the last twenty years, and incomes certainly have, the prices of options either remained about the same or declined. As a percentage of the car’s total price or of incomes, option prices have plummeted. The changes would be even more dramatic going back to 1967 and 1977. Back in the 1960s, even a heater was often an option (about $40 on a $3,000 car).

When an option’s price goes down, more people buy it. And when most people buy an option, it becomes more efficient and cost-effective for the manufacturer to simply make the feature standard.