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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.

Honda S660 Concept portends a new kei car for 2015

Apart from a tiny, one-paragraph mention in a press release about the Honda show stand in general, the company hasn't said very much about its completely charming S660 Concept. The model would seem very much to be a look ahead at a possible successor to the Beat kei car for Japanese customers, though we've been told that we shouldn't expect any kind of translation or product for the American market (despite certain key executives wanting more sports cars in the US).
Honda tells us only that the S660 roadster features "advanced styling" and "new initiatives such as Super cockpit interior." We do think that the confines of the S660 look particularly driver-focused, with a carbon fiber steering wheel clad in soft leather, very racy looking vented seats and instruments tilted to keep the pilot constantly informed.
Honda President and CEO, Takanobu Ito, also touched on the S660 in his remarks at the press conference, saying that the model "embodies the freewheeling thinking of young Honda engineers, who want to make a cool car that is unique to Honda." Takanobu also said that the concept will be developed into a production model for 2015, which is great news for Japanese drivers.

NHTSA gives okay for three automakers to skirt tire-related recalls

BMW, Honda, and Mercedes-Benz are all going to avoid small recalls, after the National Highway Traffic Safety Administration issued petitions for "findings of inconsequential noncompliance" to the three manufacturers, according to Tire Business. Basically, the petitions allow the brands to avoid recalls for some very, very minor issues.
BMW had tire placards on 364 X6 M CUVs that stated the car could only handle four passengers, when in reality it had room for three in the back. Actual plausibility of fitting three real humans in the slope-roofed Bimmer aside, the Munich-based manufacturer argued it was inconsequential, as the placards were correct regardless of the number of passengers.
Honda's case focused on 212 2011 and 2012 Acura TSX sedans equipped with 18-inch wheels. The TPMS systems on these cars were set for 17-inch wheels, rather than the larger hoops, but even with the lower settings, the tires maintain adequate load capacity.