2012 Honda Fit Sport Hatchback / Under Warranty / 26,500 Miles / Automatic on 2040-cars

Auto blog

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.

Honda to spool up turbos, workforce with F1 tech

Honda has had a longer and more tumultuous relationship with Formula One than just about any other automaker. It had only been building cars for four years before it entered F1 in 1964 as the first Japanese team in the series, winning its first race the following season but shuttering the program a few years later. Honda came back to power the likes of Williams and McLaren to several World Championships in the '80s and '90s, but things took a downturn when it started a partnership and ultimately took over British American Racing. After pouring untold billions into the effort, the economy tanked, and Honda ultimately sold the team, which subsequently claimed the championship - under new ownership and Mercedes power. Now Honda is gearing up to return in 2015 with a new turbocharged V6 hybrid powertrain it's supplying initially to McLaren, which in turn is switching back to Honda from nearly two decades with Mercedes.
So why return to F1 now? That's precisely what Autoblog asked Honda's Global President and Chief Executive Takanobu Ito (pictured above with McLaren chief Martin Whitmarsh) while visiting his office in Tokyo. While he wouldn't reveal specifics (like when his company's new engine would be available to other teams, as it most certainly will in the long run), Ito-san was clearly happy to discuss the motivation behind the move and the value he feels it brings to the company and its products.
Ito pointed toward the proliferation of motors within Honda's powertrains as a development he hopes to take to road from track

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.