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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.

Audi builds 3-millionth A3

About a month after Volkswagen celebrated building its 30-millionth example of the Golf, Audi has announced that it has produced three million versions of its small hatchback, the closely related Audi A3. Probably more surprising than the fact that the A3 has moved in such big numbers since its global debut in 1996 is the fact that it has done so with relatively little support in the US, seeing marginal sales in the States since 2005.
The three-millionth A3 was a Sportback TDI model, but the lineup has grown this year to include a new sedan and S3 model, and the hybrid A3 E-tron is on the way. With these new models - especially the sedan in the US - we expect the A3 to continue to be a popular entrant in the premium small segment. Scroll down for Audi's official press release.

Audi partners with AT&T for 4G LTE, will offer Mobile Share data plan

Audi has made a big splash at this year's Consumer Electronics Show, joining the Open Automotive Alliance with Google, Honda, Hyundai, General Motors and NVIDIA, debuting a next-generation cockpit that's destined for the third-generation Audi TT and promising to offer laser headlights in a production car. But much like Apple during the Steve Jobs days, it has "just one more thing."
The German luxury brand has announced that it will, like Chevrolet, be teaming with AT&T to offer 4G LTE connectivity in its vehicles. The first model to benefit will be the 2015 Audi A3.
"With the introduction of the new A3 family Audi is putting the most advanced technology into the compact luxury segment," said Scott Keogh, President, Audi of America in a press release. "Offering drivers a 4G LTE connection will provide the fastest in-vehicle connection available and significantly enhance the infotainment experience."