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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.

Audi spotted testing new S4 at the Nurburgring

Where there's smoke, there's fire. Only in this case, the smoke is the upcoming new Audi A4, and the fire is the S4 spotted undergoing testing in this latest batch of spy shots. Snapped in both sedan and Avant wagon forms while undergoing testing on and around the Nurburgring – where else? – the next-generation Audi S4 will of course be based on the new A4 that's anticipated to debut in Frankfurt this September. That means MLB Evo architecture and styling that takes a page out of the new TT's playbook. But in S4 trim, it'll be altogether more performance oriented. Expect an even more powerful version of the outgoing model's 3.0-liter supercharged V6, pumping out a good 340-350 horsepower to all four of its driven wheels. That power will help it keep pace with the new Mercedes C450 AMG Sport. It won't have to take on the new C63 AMG directly, though, as that'll be the job of the next RS4 that will slot above it. But since that model may never make it to US showrooms, this will stand as the flagship of the new A4 family as far as the American market is concerned. Related Video:

2014 Audi RS5 Cabriolet [w/video]

Brash Bruiser Loses Top, Gains Weight, Still Makes Friends
Everything we said after driving the RS5 coupe still rings true, even after Audi has gone and ripped off its metal roof, replaced it with a big cloth version, and tossed us the keys. The 2014 Audi RS5 Cabriolet is another bold, big-boned airmobile to make open-top lovers swoon. There is absolutely nothing revolutionary to speak of here versus its hardtop counterpart, frankly, but tear-assing through the southern French hills as the brilliant sun warmed us is plenty good reason to talk a lot about it anyway. And hey, it beats frigid January in Detroit, where the RS5 Convertible is shortly to receive its US introduction.
One issue that could corrupt things a bit is the convertible's added weight factor. It's one thing when an Audi TT removes its top and gains 176 pounds, or when a Porsche Cayman morphs into a Boxster and gains 66 pounds; the effect on dynamics will still be acceptable. But when it comes to a huge-roof coupe like the RS5, that gain in mass becomes 400-plus pounds in cabrio form, for a grand curb weight of 4,461 pounds. As a number attached to this size of a car that's also branded with an RS badge promising raciness, we admittedly fretted. Then we drove the Audi RS5 Cabriolet to cheer up.