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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 Q3 production begins in Spain

2012 Audi Q3 - Click above for high-res image gallery
It wasn't that long ago that Audi had no SUVs in its lineup - aside from the A6 Allroad Quattro - despite being known for its all-wheel-drive vehicles. But that's all changed, just as it has for BMW and Porsche. The Q7 was followed by the Q5, and now the Q3 has started production as well.
The first Q3 rolled off the assembly line today at the plant in Martorell, Spain. The facility belongs principally to Audi's sister-company Seat, but has gone through a considerable expansion - funded by both Audi and Seat - to prepare for the Q3's production.

2015 Audi Q3 headed for Detroit before hitting US showrooms this fall

The market for small premium crossover vehicles continues to grow in popularity here in the US, and Audi is finally ready to get in on the action. Going up against competitors like the BMW X1, Land Rover Range Rover Evoque and soon-to-arrive Mercedes GLA-Class, Audi will unveil a US-spec version of the 2015 Q3 at the Detroit Auto Show next week. And in what we can only assume is an amusing coincidence, the Q3 will go on sale during Q3 of this year.
As we reported back in October, it appears that our Q3 will boast a slightly taller ride height than its European counterpart, but Audi isn't releasing too much information about the crossover just yet. What we know for sure is that it will be powered by Audi's well-liked 2.0-liter turbocharged TFSI inline-four producing 200 horsepower and 207 pound-feet of torque. A six-speed automatic transmission and front-wheel drive will come standard, while Audi's Quattro all-wheel-drive system will be optional.
Visually, the 2015 Q3 shown here has a different front fascia design than its European counterpart, but it's not immediately clear if this is exclusive to the US model or if it will be a new element for Q3 in all markets. We don't expect pricing to be announced until closer to its on-sale date, but the Q3 will definitely be stuffed with content, even in base form. Audi has already confirmed such niceties as a panoramic moonroof, Xenon headlights and heated leather seats. Delivering a good amount of practicality for its size, the Q3 will provide a maximum cargo capacity of up to 48.2 cubic feet and 16.2 cu-ft with the rear seats in place.