2022 Kia Sportage Lx on 2040-cars

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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 previews its Super Bowl baby commercial, far cry from Adriana Lima

We're going to go ahead and give Kia the benefit of the doubt - the automaker brought us a bathing-suit-clad Adriana Lima in its Super Bowl spot from last year. That kind of thing doesn't go unappreciated.
But, if we're really honest, and judging solely on the "teaser" video below, the space suit-wearing, baby-star from Kia's commercial this year is really creeping us out.
In any event, the Kia ad (sorry, "mini-movie") called Space Babies will be set on the distant planet of "Babylandia," and will attempt to present some kind of lie about where babies come from in the ultimate service of selling the 2014 Kia Sorento. Don't let the panda, dog, pig, giraffe, rhino and unholy baby stare make you take your eye off the ball, folks - there's a car on sale here.

Hyundai, Kia expanding plug-in vehicle line-up in Korea

Hyundai is shedding a bit of light on its electric vehicle plans. About time, too, since the company has spend a long period being quite vague about plugging in while touting its hydrogen plans. The Hyundai and Kia brands will both release their first plug-in hybrid vehicles next year in Korea; an all-electric version of the Kia Soul will roll out in May of this year and a mid-size electric vehicle will be launched as early as next year. Test versions of the Hyundai i10 electric vehicle have been on Korean roads since first being used at the G20 summit in Seoul in 2010. There have been hints about an electrified Hyundai coming to America, and at the Washington Auto Show last week, Michael O'Brien, vice president of corporate and product planning for Hyundai Motor America told AutoblogGreen that a new EV will be coming to the US market sometime within the next three years. A Hyundai executive told Korean national daily The Chosunilbo that the company will be significantly increasing its investment in hybrids and EVs to roll out a few eco-friendly models starting in 2015. It's hard to say which of these might come to the US market – a new LF Sonata will be coming out in both a regular gasoline and hybrid system in Korea; the US already has the Sonata Hybrid for sale. As for plug-in hybrids, Hyundai said that there will be both Sonata and Kia K5 (Optima) models coming out next year. These will also be the first-ever plug-in hybrids in the Korean market. Featured Gallery 2012 Hyundai Sonata Hybrid View 13 Photos News Source: The Chosunilbo Green Hyundai Kia Electric Hybrid Hydrogen Cars PHEV