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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.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.

2020 Kia Telluride First Drive | The cool dad of crossovers

TELLURIDE, Colo. — We're going to be talking a lot here about practicality and value, but inevitably, the main appeal of the 2020 Kia Telluride comes down to its styling. People dig it. It's boxy, rugged and has a whiff of Range Rover premium cool. In a three-row crossover segment dominated by non-descript family haulers, the Telluride stands out by subtly flying its family flag. It's the cool dad in a leather jacket and Ray Ban Wayfarers standing next to the shlub in wrinkled khakis. The visual attraction carries inside. There is a style present in even low trim levels that you just won't get in the Honda Pilots and Subaru Ascents of this world, which prioritize simple functionality. The risk to that approach is that it makes it especially difficult on upper trims to make them look and feel like vehicles that warrant price tags approaching $50,000. The Telluride has no such issue, as the range-topping SX trim level we tested boasts a cabin worthy of such a luxury-nearing price tag. There's convincing wood trim, soft leather and leather-like surfaces everywhere, and feature content that's second to none in the segment. Better yet, the volume-selling EX trim level one rung down the ladder has pretty much the same look, but with fewer high-lux features slathered on. While the Telluride's mechanically related cousin, the Hyundai Palisade, has generated plenty of interest since its introduction, the big Kia feels like it has captured actual buzz. Still, the two are awfully similar on paper. The wheelbase is identical, as is the 3.8-liter V6, eight-speed automatic and 5,000-pound towing capacity. The Kia's is a mere 0.8 inch longer and 0.4 inches taller, but there's 1.8-inch greater third-row headroom, and three more cubic feet of space behind the third row — perhaps its most significant difference. The Telluride's cabin is also bigger and more spacious than popular entries like the Pilot, Ascent and Toyota Highlander. Only the 2020 Ford Explorer and gargantuan Chevrolet Traverse enjoy a size advantage among three-row crossovers. Importantly, however, the Telluride's big enough inside that shoppers should be able to easily distinguish it from the Sorento, despite both having three rows of seats. Simply, the Sorento is for people who might use the third row on occasion for short distances and/or with short people. The Telluride's third row can be used by anyone on a regular basis.