Rwd 4dr Glk350 Glk-class New Suv Automatic Gasoline 3.5l 24-valve Dohc V6 Polar 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.

Formula 1 seeking independent engine supplier

Formula 1 could get a new engine supplier in the near future, if Bernie Ecclestone and the independent teams gets their way. According to Autosport, the FIA is soon to open the contract up for bids, and there are already several manufacturers that have expressed interest. Currently Mercedes, Ferrari, Renault, and Honda supply engines – both to their own premier teams (Red Bull and McLaren for the latter two) but also to other teams like Williams, Sauber, and Toro Rosso. Because the new turbocharged V6 hybrid power units cost those four suppliers so much to develop, they're charging their customer teams big bucks – around $20-30 million per season – to provide the engines. These costs are much higher than the $10 million or so it used to cost to purchase a V8 engine under the previous regulations. Ecclestone figures it's time to bring in another supplier who will not run their own team and not play favorites, but will supply engines to private teams at a lower cost. There are already a number of potential suppliers under consideration. One of them is said to be Cosworth, which has a long history in the series stretching back to 1963. The British firm stepped back between 2007 and 2009, returned in 2010, and dropped out again after 2013. The development could be of particular benefit to Red Bull, which has been unable to find an engine supplier and could be forced out of the series as a result. The team has long been powered by Renault, but that relationship has grown sour. And the other three engine manufacturers have not been forthcoming in offering an alternative arrangement for the team. Related Video: News Source: AutosportImage Credit: Cosworth Motorsports Ferrari Honda Infiniti McLaren Mercedes-Benz Renault F1 engine contract

The BMW 8 Series leads this month's list of discounts

Whether you prefer the sleek looks of a sport coupe, the wind-in-your-hair exhilaration of a convertible or the flexible practicality of a four-door sedan, BMW has an 8 Series to suit your fancy. And if you're in the market right now, you may find that your local BMW dealership is willing to take $18,124 off the sticker price. That figure comes courtesy of TrueCar, and it reflects the discount buyers are getting off the 8 Series' average $122,395 retail price. Most of the 8 Series models in American showrooms today are 2019 models, and that's the model year to which the discount above applies. This represents the largest discount on a new car in America this month, based on the dollar amount off the car's sticker price, and the third largest discount by percentage. And it means the average transaction price for a 2019 BMW 8 Series is hovering at $104,271. 2020 BMW 840i Gran Coupe View 38 Photos BMW offers two distinct versions of the 8 Series, the 335-horsepower 840i with rear- or all-wheel drive, and the 523-horsepower 850i, which comes standard with BMW's xDrive all-wheel-drive system. If you want to step even further up the performance ladder, there's the M8, but that 600-horsepower monster is getting a much smaller $6,150 discount. If you're not into BMWs, the 2019 Mercedes-AMG GT boasts the second largest monetary discount this month, with buyers averaging $16,713 off the Benz's $176,035 sticker price. Another Mercedes, the S-Class, is next with a $11,452 discount. After that comes a pair of Maserati sedans, the Quattroporte and Ghibli, each with discounts of around $11,000. Since the Ghibli's base price is so much lower than that of its larger sibling, that represents a much larger 13.5% cut from its average retail price of $81,384 for an out-the-door cost of $70,373. For a look at the best new car deals in America based on the percentage discount off their suggested asking prices, check out our monthly recap here. And when you're ready to buy, click here for the Autoblog Smart Buy program, which brings you a hassle-free buying experience with over 9,000 Certified Dealers nationwide. Related Video: