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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.

Mercedes-Benz releases stunning first images of 2014 S-Class

The all-new 2014 Mercedes-Benz S-Class, designated W222, is one of the most highly anticipated debuts of its model year. Every generation of the flagship sedan has broken new ground in technology and innovation for the entire industry, and the German automaker appears determined to raise the bar much further with its latest arrival as it promises to deliver "the best automobile in the world." Mercedes-Benz has just released nearly two dozen interior images of the new sedan, showing off style in design, craftsmanship in execution and pioneering advancements in technology.
Unlike all previous generations - the first S-Class officially arrived in 1972 - the 2014 model completely discards a traditional instrument cluster and replaces it with two high-resolution color displays in 8:3 format with a screen diagonal of 12.3 inches (the outgoing model's gauges were a mix of digital and analog). The left unit displays traditional analog gauges (digitally, of course) while the right unit is reserved for infotainment and comfort settings with the automaker's all-new mBrace2 - a cloud-based entertainment and information delivery system that is rolling out this year.

Mercedes to market Tesla-powered 2014 B-Class EV in U.S.

Looks like another Tesla Motors investor will be looking to cash in on their connection. Autoweek reports Mercedes-Benz will offer their B-Class in the U.S. with Tesla propulsion.
The magazine says their source at the German automaker confirms plans for a B-Class electric-only vehicle. While Tesla already provides battery packs for the battery-powered Smart ForTwo, the B-Class EV will reportedly have Tesla batteries, motor and other components. U.S. residents should be able to procure one sometime in 2014.
The same Mercedes source says plans for a hybrid B-Class have been postponed for now. Adding a range-extending, gasoline-powered engine to an electric vehicle would put the car into a different class for which rebates and incentives aren't as favorable in the States.