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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.

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

Audi Prologue Avant puts new styling focus on wagons

As much as we loved the Audi Prologue Concept that debuted late last year at the LA Auto Show – and, suffice it to say, we liked the first Prologue a lot – this new Prologue Avant from the German automaker may just rock our socks that much further off our feet. We have very little by way of actual, concrete details on what's under the angular wagon-shaped skin of the Prologue Avant, but we'd be perfectly content if it kept the previous two-door's 4.0-liter twin-turbo V8 in place underhood, augmented as it was when it was again shown at CES last month with a hybrid-assist system that put total system horsepower at 677, along with a meaty 701 pound-feet of torque. With all that power routed to all four wheels through an eight-speed automatic transmission, the 0-60 time of just 3.5 seconds strikes us as plenty quick. The powertrain details hardly seem the point of this new concept from Audi, in any case. Clearly, the big deal is the new bodywork, which builds upon the beautiful foundation of the original Prologue coupe with an elongated wagon shell and three additional doors (two rear doors and a rear hatch). The attractive body sits low to the ground on exaggerated 22-inch wheels, according to Auto Express. We note high-tech lighting elements front and rear and a modified front fascia with a bit more brightwork than the previous version. Assuming there's a bit of future reality baked into the Prologue Avant – which we believe is likely, considering that the coupe we salivated over in LA was said to point the way forward for the brand – it's safe to say we're in eager anticipation of the next several years at Audi. Have a good look at the images that have so far been released, and feel free to let us know what you think. We're sure Audi is interested in hearing your opinions, too. Related Video: News Source: Audi via Auto Express Design/Style Geneva Motor Show Audi Wagon Concept Cars Future Vehicles Hybrid Luxury Performance 2015 Geneva Motor Show