How much did it cost Henry Ford to build the Model T automobile?

I have looked everywhere but cant find this answer! I only want to know how much it cost to build it. Not how much it was sold for.

5 Answers

  • 1 decade ago
    Favorite Answer

    Over 15 million Model Ts were produced/ sold between 1908 –1927. The cost to produce the Model T varied by year. The reason is Henry Ford constantly found ways to reduce production costs through the years. Most notably, he did this with the introduction of the moving/ mechanized assembly line in 1913. Once implemented, Ford honed the process with improvements. As an aside, it is Ransom Olds (the Oldsmoblie) who is credited with inventing the assembly line, not Henry Ford.

    IN 1908, the cost of the Model T was $908. His profit margin on each car in 1909 was $220. So, roughly, the cost to manufacture a car in the first two years of production was approximately $685 + - . Through the years, Ford’s profit margins were much less as the company relied on volume sales. Read on…………

    “In October 1908, the first Model T Fords were sold for $950. As Henry Ford found new ways to reduce production costs, he passed the savings on to consumers as lower prices. By 1912, the car was selling for $575. It was the first time that a new car had sold for less than the average wage of U.S. workers. The price of the Model T would continue to drop during its 19 years in production, at one point dipping as low as $280. With each price cut, more and more consumers could afford to buy the cars.

    This reduction in price meant that Ford's profit margins (on each Model T) decreased but its revenues increased. How was that possible? In 1909 the profit on a car was $220. By 1914, the margin had dropped to $99. But sales were exploding. While profit margins on individual cars were smaller, the added sales volume increased total profits. During this period, the company’s net income rose from $3 million to $25 million. Its U.S. market share rose from 9.4 percent in 1908 to a remarkable 48 percent in 1914.”

    Today, the average price of a new car is $23,543. Prior to the introduction of the Model T Ford, the average price for a new car in 1908, adjusted for inflation was $43,950.

    The Model T cost $950 new in 1908, which is almost $20,000 in today’s dollars. However, due to constant improvements in and optimization of Ford’s assembly line, the Model T’s cost declined through the years until it cost less than $300 in the 1920s. $300 in 1927, adjusted for inflation, would be approximately $3,800 in today’s dollars.

    I cannot provide figures by year, but in general, the cost of the Model T declined through the years that made it the first car that was 'affordable to the masses.'

  • 1 decade ago

    At the height of production or originally? At the height I think it was about 150.00 per car.

    Try contacting the Henry Ford Museum and see if they can give you some info.

  • 3 years ago

    He did not discover something - he invented there's a difference - his significant progression in vehicle industry became the assembly line making it some distance greater low-fee to make automobiles so greater human beings could desire to locate the money for them.

  • 3 years ago


    Source(s): Vehicle History Report
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  • ken k
    Lv 7
    1 decade ago

    no available costs/took time out from his mfg business to do this.big thing he did was get these cars on assembly line basis/for mass production

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