The rising cost of diecast cars is obvious and undeniable. Starting in early 2004, China-based diecast manufacturers began to demand ever-increasing premiums for their products. While the overall quality and detail of diecast cars has steadily and dramatically improved since 1/18-scale became popular in the 1990s and began to define the hobby as it now exists, the sharp rise in cost in the last three years is not justified simply by offering a better product. In fact, other industries which rely on technological advances (such as personal electronics, home computers, software, building systems, manufacturing, etc.) continue to offer superior results while often reducing cost to consumer.
So why the higher cost of diecast cars? Simply put, materials and transportation. Used extensively in diecasting, zinc alloys, the primary components of which are zinc, aluminium, magnesium and copper, have seen sharp and steady increases in cost (see graph above). In fact, since we began tracking the cost of Special High Grade Zinc in July, 2005 it has risen 265%!
At $10 per gallon, gasoline in China is precious. While the Chinese economy may be booming, red tape, legal uncertainty and past turmoil have resulted in crushing gas prices, resulting in monstrous costs to move a container from the a factory in the interior of China to ports for shipping to the US and abroad.
Lastly is the marked increase in the cost of corrugated cardboard used in packaging and the exterior cases that diecast cars are shipped in. This increase has been felt worldwide and accounts for a small percentage in overall cost hikes for the market.
My advice? Don’t take your frustration out on your favorite diecast dealer whose higher prices simply reflect the market. Instead, choose your purchases wisely and educate yourself on the larger picture.
