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Will states start to prevent you from registering cars that have pending recalls?

The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker. Honda Executive Vice President Rick Schostek, pictured above, argued during a meeting of the Senate Transportation Committee that the government needs to take a role in mandating that consumers have recall services performed. That could include withholding registration for vehicles with pending recalls, Bloomberg reports. Honda is just one of the automakers currently embroiled in the massive Takata airbag recall. "It's a good idea," safety advocate Clarence Ditlow said, according to Bloomberg. "California won't give you a registration if you have an emissions recall. Why not a safety recall?" "Honda is going to use any innovative tools to find customers and get these recalls done," Schostek told the Transportation Committee. The exec, aside from echoing Ditlow's viewpoint, also argued for requiring dealerships and garages to inform vehicle owners of incomplete recalls, regardless of the service provided. Schostek also made an argument that state governments could step in, as well. Whatever ends up happening, it's fair to say that between Takata and General Motors, the future of recalls for American consumers are set for significant changes. News Source: BloombergImage Credit: J. Scott Applewhite / AP Government/Legal Recalls Honda Ownership Safety

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 is replacing airbags nationwide, not just in humid states

With a Senate hearing scheduled for November 20, the investigations into the exploding airbag inflators from automotive supplier Takata are just beginning. Honda is among the automakers most affected by the problem with over five million vehicles potentially in need of repair in the US, according to the last estimate from the National Highway Traffic Safety Administration. But the actual number being fixed could be even higher because the company is also working with worried owners nationwide.
According to the Associated Press, Honda is willing to perform the repair for concerned owners of affected vehicles who live outside of the high-humidity regions that the recall covers. In a letter to customers online, the company explains that it wants to work with them to fix the problem and even provide temporary transportation, if necessary.
"This is not a new thing, and it does not represent us including vehicles outside of those regions within the recall or investigatory campaigns. It is a part of our ongoing efforts to work with our customers individually to resolve their concerns, even if their vehicle is not technically part of one of those actions," said Honda spokesperson Chris Martin to Autoblog via email.