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Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Refreshed Audi A6 gets ready for Paris debut

The Audi A6 remains a solidly luxurious choice in the deeply competitive executive sedan segment, duking it out with the Mercedes-Benz E-Class, BMW 5 Series and Lexus GS, among others. Having been on sale since 2011, though, it's starting to become just a tiny bit stale. Cue the refresh.
Expected to make its debut in October at the 2014 Paris Motor Show, the long-roof Avant/Allroad variant shown here gives us our first glimpse at some of the tweaks Audi has in store for its A6 range as a whole.
In general, this is pretty standard refresh stuff - new headlights that retain the same general shape as the current car but add a new DRL pattern, while there are also some subtle tweaks to the front fascia. The rear taillights have also been freshened (although as only the A6 sedan is sold in the US, it's likely the taillights we see will be different), and some minor changes have been made to the rear bumper. According to our spies, the cabin and MMI infotainment system could see some tweaks, while the oily bits under the hood could be in for for some minor changes as well.

Audi unveils its Doberhuahua Super Bowl commercial

With Super Bowl Sunday less than a week away, this week is going to be dominated by anything and everything football related. That includes advertising and the auto industry, as some of the biggest players prepare to launch multi-million-dollar spots hawking their latest and greatest products.
A veteran of Super Bowl ads, Audi's history has been rather checkered, ranging from controversial to funny to Jason Statham. We aren't entirely sure where to place this year's ad. The German brand has released a pair of teaser videos on the so-called Doberhuahua, a crossbreed of a Doberman Pinscher and a Chihuahua. Now, we have the full spot.
We get the message Audi is going for - compromise is bad - but delivering it via a slobbery, mutant dog strikes us as trying a bit too hard to be funny. Take a look below and let us know what you think of the Audi's Doberhuahua spot. And of course, you'll be able to see the new ad come Sunday, when it airs during the Super Bowl.