Before the 1920s, owning a vehicle was a rare luxury in the United States. While many people probably knew the owner of a vehicle, they were not in a position to afford to purchase one themselves. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Statistically, about a third of households owned a car in 1920, although they were not evenly distributed across the nation. Southern states with more poverty had significantly fewer vehicles owned than wealthier Northern states (Kyvig 27). In the late 1910s and early 1920s, the way automobiles were designed and sold dramatically changed forever. This change is primarily due to a change in the American people's attitude toward consumer credit and the balance between form and function. These changes were influenced by the newly available consumer credit opportunities and occurred in reaction to the 18th century attitude that function was more important than form. However, things were on the upswing. Since Ford's introduction of a low-cost family vehicle in 1908, Model T Fords have been seen in driveways more than any vehicle before. Priced at $825, it didn't meet the standard of the most affordable vehicle for the masses. Ford's previous vehicle, the Model N, lacked the features, refinement and size of the Model T and cost just $600. The original Oldsmobile Curved Dash from Random Olds cost $650, only slightly beaten by the Model N (Kyvig 27-28). While the Model T was objectively a better car with room for the family, more horsepower, a higher top speed, and relatively good fuel economy, the average salary was between $400 and $600 (almost 208). The vehicles available at the time were simply not affordable for a normal person. Henry Ford's use of the assembly line, as well as component and manufacturing decisions that increased assembly efficiency, dramatically reduced the cost of the Model T. The 1914 Ford Model T cost only $490, significantly less than offerings from other automakers (Kyvig 29). In contrast, General Motors was poised to offer great competition to Ford with its more expensive vehicles. Families saved money for years to afford their Model T Fords, and many others were unable to save enough in a reasonable time to justify planning to buy the car. In 1919, General Motors established General Motors Acceptance Corporation (GMAC) (Smith) . GMAC's sole purpose was to allow General Motors to lend people enough money to buy their cars, solving a problem that both Ford and GM were having at the time. They initially required a 30-35% down payment, but the loans had to be repaid within a year. Because banks generally did not offer automobile loans, the GMAC represented the first opportunity for the average family to purchase a car without first saving for the entire purchase (Smith; GMAC Financing Programs, 1919.). While this was a big step toward improving Americans' mobility, it didn't entirely ease the pain of paying for a car. With 65-70% of the vehicle still due for payment within the next year, families were under pressure to pay off the car quickly. Despite this, this was the best option for financing cars as it was largely unavailable from other sources. The financing of avehicle was not considered as important as financing the purchase of a business and was looked down upon. It was acceptable to finance necessities, but cars had alternatives. Household appliances were also affected and were purchased mainly by the wealthy. However, financing was offered for Singer sewing machines in order to make them more affordable for average families (Credit History: The Evolution of Consumer Credit in America.). Saving money and then using it to make the entire purchase was the norm during the period. United States before GMAC, and remained the best way for average families to buy a car. Henry Ford was a firm believer in cash purchases. He wanted his vehicles purchased outright, which was difficult even at the Model T's lowest price, around $310 (Kyvig 31). Some Ford dealers offered their own financing opportunities to customers, but this was not an officially sanctioned practice. Ford's official program was called the Weekly Payment Plan and required customers to make regular deposits at local dealerships. Once the purchase price of the vehicle was paid, customers could finally take their car home (Smith). This was not a popular program, as customers could afford their car more quickly with GMAC financing. General Motors sweetened the deal with the Americans in response to Ford's weekly payment plan, even though it was not a very competitive program. They have introduced an easier way for families to afford their new Chevrolet with the 6% purchase certificate. This plan allowed the down payment for the GMAC loan to be made in small portions on a weekly basis. Once the down payment amount was paid, customers could drive home in their new Chevrolet and the rest of the payments were made through the standard GMAC program (GMAC Financing Programs, 1919.). People seemed to gravitate towards the approach of financing a more expensive car rather than buying a cheaper car outright. In 1927, General Motors sold more vehicles than Ford (Williamson). Ford responded to consumer demand and opened the doors to a new branch offering auto loans in 1928 (Smith). This returned Ford to the position of top seller in the United States, but only for a few years. Ford and General Motors fought back and forth for top seller position, but after 1937 General Motors dominated the market. While they helped, payment terms clearly weren't the only things that mattered to car buyers. General Motors, although it entered the market later than Ford, has become the market leader. General Motors had a different vehicle production strategy than Ford offered. While Ford was focused on providing economical vehicles, General Motors designed better quality vehicles and wanted them to be more attractive to customers. General Motors offered vehicles available in colors other than black, in stark contrast to the black-only Ford T-models (Gartmann). General Motors has also worked to make its cars more attractive to consumers, further strengthening its appeal over Ford in the minds of the American consumer. While the Ford Model T looked largely the same from its introduction until it was discontinued, General Motors updated the look of its vehicles for each model year. Their designers made small body changes to allow people to differentiate model years from each other, in hopes that people would sell their old vehicle and buy a new one when they saw all the newer vehicles coming their way..