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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.

Is Fernando Alonso preparing to sit out 2016?

Things have not been going well for Fernando Alonso since moving to McLaren. In fact they've been going so poorly that the Spanish driver may end up sitting out next season if things don't improve. At least those are the rumors presently occupying the Formula One paddock. The notion was first raised by McLaren chief Ron Dennis. When asked by reporters about Alonso's near-term future with the team, Dennis said, "I have an open mind to anything, and some of the ideas have involved those sorts of considerations, yes, sabbatical years etcetera." Though far from confirmed, the basic idea would be to see how next year's car performs in pre-season testing, and if it's not up to spec, Alonso could end up sitting out a season while McLaren and Honda get their partnership up to speed, so to speak. Alonso appeared to be puzzled by the prospect his boss raised, but couldn't rule it out, either. It would be a rather unprecedented move, but could end up avoiding some frustrations as the Anglo-Japanese teething process works itself out with time. Alonso has been a constant on the grid since 2003, missing only two grands prix in thirteen seasons: the 2005 United States Grand Prix at Indianapolis when all the Michelin-equipped teams sat out the race in protest, and the Australian Grand Prix at the beginning of this year, when Alonso was still recovering from a crash in pre-season testing. Out of 254 grands prix contested to date, Fernando has landed on the podium 97 times, including 32 wins and two world championships. This season, however, he's only finished in the points once, with his fifth-place finish in Hungary. Of the eighteen races he contested this year, his car failed to get him to the finish line altogether at seven. His seventeenth place in the final standings for the season are the worst he's done since his debut in 2001 with Minardi (the team now known as Toro Rosso). News Source: Autosport (1), (2), (3)Image Credit: Clive Mason/Getty Hirings/Firings/Layoffs Motorsports Honda McLaren F1 mclaren-honda

Honda finds new Green Path to reduce CO2 emissions

In the wake of the Volkswagen diesel scandal, it's impossible to hear an automaker talk about its overall environmental efforts and not think to yourself, "for real?" Still, we're willing to listen. And Honda representatives gave it their best shot yesterday in Marysville, OH as they introduced a small group of journalist to the company's expanded initiative aimed at cutting CO2 emissions and the total life-cycle environmental impact of Honda products. Called Green Path, the initiative now includes a $210-million expansion at Honda's Marysville, OH manufacturing plant to install a better, cleaner paint shop. Speaking at the facility yesterday, Honda representatives said that the plant room is not only better for the environment (it uses limestone dust instead of water to capture paint particles, for example, reducing water usage by about 2 million gallons annually. Overall, the new paint shop will have 60 percent less VOC emissions and reduce CO2 emissions by 18 percent), it also makes the cars look better. That's whey the two-step temperature curing process will initially only be used on Acuras to differentiate them from the competition. Honda will fire up trials in late 2017. There's more to Green Path than the new paint show, of course. The company wants to reduce - in some cases eliminate - what it calls substances of concern (SOCs), things like lead and mercury. There are also new wind turbines in Ohio to supply power to Honda plants, the Environmental Leadership Program for independent dealerships to make their own green moves, and swapping out fluorescent light bulbs for LEDs, among other efforts. In the Marysville Auto Plant, for example, the Assembly department has over 10,000 task light bulbs. The fluorescent ones used to need to be replaced every three years, but the new LEDs have a life span of 16 years. Honda says that calculating up the impact of all of these little changes will remove an average of 3.822 kilograms of CO2 from the production tally of each car it makes. The company's stated goal is to reduce its total greenhouse gas emissions by 50 percent (compared to 2000 levels) by 2050. You can find out more in Honda's press release and video, below. Honda Announces New "Green Path" Initiative to Reduce Total Life-Cycle Environmental Impact MARYSVILLE, Ohio (Sept.