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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.

Kia teases sporty hatchback concept ahead of Detroit

The UK arm of Kia just released a teaser image (click to enlarge) for a new concept car that will be unveiled next month at the Detroit Auto Show. With little information to go on, the single overhead shot of the unnamed concept shows that it will be a two-door hatchback with a 2+2 seating configuration.
The brief press blast, which is posted below, promises that this is a new concept vehicle, so it's unlikely that it has anything to do with the similarly shaped Provo Concept that Kia showed off earlier this year at the Geneva Motor Show. Kia says that it will release more images of the concept soon, but it won't divulge the full details about the car until Detroit.

Kia to reveal 2015 Sedona minivan in New York

Hold on to your sippy cups, America. The Kia Sedona minivan may have gone to recess for the 2013 model year, but it mounted a quiet comeback for 2014 sporting the slightest of updates. Thankfully, those minor tweaks will only have to sustain it a short time. Kia knows it can't afford to nap for another year against strong rivals like the Honda Odyssey and Chrysler Town & Country, and the Korean automaker remains committed to duking it out in the kinshlepper segment. So committed, in fact, that Autoblog has learned it will launch its third-generation minivan at April's New York Auto Show.
As seen in these spy shots captured last August, the 2015 Sedona will incorporate styling cues from Kia's well-recieved 2012 KV7 concept, and it's predicted to feature more refined drivetrains and interior appointments, including Kia's latest UVO infotainment system and available rear-seat entertainment. We further expect fuel economy figures to get a nudge upwards thanks to fuel-saving features like electric power steering and direct injection.
Given the minivan segment's 'safety first' mindset, look for the next Sedona (known elsewhere as the Carnival) to offer a full quiver of active safety features, including blind-spot detection and a lane-departure warning system - two popular features the 2014 model does without.