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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.

2015 Mexican Grand Prix is a lot like old times

The last time Formula One visited Mexico, in 1992, 26 cars powered by eight engine manufacturers (counting Honda and Mugen-Honda separately) lined up on the grid; it would have been nine engine makers but the Brabham-Judd cars failed to qualify. In 1992 Lewis Hamilton was seven years old, Sebastian Vettel was five, Max Verstappen was still five years away from being born. Two of the current Sky Sports F1 commentary team, Martin Brundle and Johnny Herbert, were drivers. The starting three were Nigel Mansell on pole – 39 years old, this the year he'd win his only World Championship – and Riccardo Patrese both driving Williams-Renault cars, followed by Michael Schumacher in a Benetton-Ford. Only 13 of the 26 starters would finish. The circuit is has been reworked to today's safer standards, the track surface is brand new and slippery, but the atmosphere and packed grandstands haven't changed. Nico Rosberg was another point of consistency, scoring pole position for the fourth race in a row to beat his now-World-Champion teammate Hamilton by almost two-tenths of a second. The last time Rosberg turned pole position into a victory? The Spanish Grand Prix back in May. Vettel locked up third for Ferrari, followed by the Infiniti Red Bull Racing duo of Daniil Kvyat and Daniel Ricciardo. Williams went two-up as well, Valtteri Bottas in sixth ahead of Felipe Massa in seventh. Max Verstappen turned in a great late lap to reserve eighth place, Sergio Perez did all he could in front of his home crowd to get ninth, teammate Nico Hulkenberg the caboose in the top ten. In that 1992 race the first three on the grid finished the race in the same order after Mansell dominated, and it was almost the same in 2015. If Rosberg had driven the whole season like he drove today the Driver's World Championship would still be up for grabs. He got a great start and held his line through the first corner, coming out ahead of Hamilton through the initial kinks, pulling away as soon as he got to the straight. Hamilton was never more than a few seconds behind, but every time the Brit inched closer the German found a few more tenths to keep his distance. The field got bunched up when the Safety Car came out on Lap 53 after Vettel spun and got stuck in the barriers, but Rosberg handled the restart perfectly. Both drivers made small mistakes in the last few laps while driving on the edge, but Rosberg earned a strong victory, crossing the line two seconds ahead of his teammate.

Mystery shoppers love Infiniti, hate Tesla

Infiniti, followed by Lexus tied with Mercedes-Benz took the top two spots for best sales experience according to mystery shoppers from the latest Pied Piper Prospect Satisfaction Index, while EV manufacturer Tesla recorded the lowest overall score. Not surprisingly, premium brands dominated the top ranks. Including the three already mentioned, luxury brands occupied seven of the top ten spots and included Audi, BMW, Porsche, and the only American brand to crack the upper echelon, Cadillac. Toyota, Volkswagen, and Nissan rounded out the first ten positions. The news for domestic automakers isn't good. Aside from Caddy, the only other star-spangled automaker to score above the industry average is Chrysler. The rest of FCA, most of GM, and all of Ford fell below the line. But Pied Piper's mystery shoppers handed Tesla the biggest walloping – the company is ten full points below the next lowest brand, Volvo, and its score of 86 is 17 below the average of 103. It's baffling, considering the company's touted direct-sales model. "Tesla leaves me scratching my head," Fred O'Hagan, Pied Piper's president and CEO, told Wards Auto. "They own all of their stores, so you would think each one would be doing the same thing. But they're not. Tesla is consistent in its inconsistencies." O'Hagan added that there's a "huge variation" in Tesla's store-to-store effectiveness, and that in some cases, shoppers found showroom workers that acted more like "museum curators," Wards Auto reports. It might be popular to call Tesla the Apple of the car world, but based on Pied Piper's work, the brand has a long way to go to emulate the uniform shopping experience of an Apple Store. The news might be bad for Tesla, but even for the brands that scored below average, there's cause for celebration. Only Tesla and Mini lost points in this year's rankings, and only Mercedes and Lincoln held steady. Every other brand, including Infiniti, which topped the index for the first time, gained at least one point. The biggest improvements belong to Porsche, Land Rover, and Mitsubishi, which all jumped five points. Pied Piper's annual Prospect Satisfaction Index uses mystery shoppers – over 6,100 this year – from across the country to assess dealers and generate rankings from over 50 individual factors. News Source: Pied Piper via WardsAuto Green Audi BMW Cadillac Chrysler Infiniti Lexus Mercedes-Benz Nissan Tesla Toyota Car Buying Car Dealers study