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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.

2013 Audi RS5 Cabriolet

The Audi RS5 is a bit of an odd duck in the brand's US lineup. At the moment it is one of only two RS models - the other being the TT RS - atop a pyramid of A and higher-performing S models. It is not, however, the brand's flagship performance model - not even close - that space being occupied by variants of the R8 supercar, specifically the V10 and GT models, and upcoming 560-horsepower RS7.
The RS5 does, however, owe its beating heart to those ten-cylinder R8s, its own 4.2-liter V8 almost identical to those engines save for two fewer cylinders. Outside of the R8, then, the RS5 is the lone bastion of naturally aspirated V8 power in a brand that once happily shoved 4.2-liter V8s under any hood that they would fit. Today, not even the giant Q7 SUV offers a V8. Lastly, the RS5 is not new, except to us, having been on sale in Europe in coupe form the last couple of years.
While Europeans were able to enjoy the hardtop two-door without us, the RS5 Cabriolet is reaching both peoples around the same time: now. We reviewed the RS5 coupe just recently, and having spent some time with the tin-top model myself as well, here is my take on the droptop version of what I consider one of Audi's most interesting models.

Audi RS5 gets big turbocharged power and an angry new look

Menace has always been one of the keys to Audi's RS 5 coupe, from the fat wheel arches to the rumbling evocative exhaust note to the brutal straight-line performance. That's not going to change with the new version, but Audi is talking loudly and proudly about how the RS 5 debuts the new RS design language, partly in the hope that people don't labor on the disappearance of its V8 engine. Yes, the all-new RS 5 Coupe uses the same Porsche-engineered biturbo V6 as the Porsche Panamera, and uses it to such effect that it extracts 444 horsepower and 443 pound feet of torque from its 2.9 liters of displacement. Those 443 lb-ft is a full 125 more than the V8 could ever muster, and it's available from 1,900 rpm to 5,000 rpm. That kind of power is sufficient to push the RS 5 to 62 miles per hour in 3.9 seconds on the way to a limited 155-mph top speed (there's an optional 174-mph limiter, too). The all-wheel-drive Quattro RS 5 Coupe doesn't suffer much in performance in the switch from the naturally aspirated 4.2-liter V8 to the force feeding of a V6, but it remains to be proven whether the sound can be as captivating. The Porsche-sourced engine continues the current trend of "hot vee" engines, situating both of its turbochargers inside the vee-angle of the engine, and combines centrally-mounted direct fuel injectors with a short stroke to boost power and improve economy. The high-compression Miller-cycle motor also lets the RS 5 Coupe pull its consumption down 17 percent to 32 miles per gallon (or 197 grams/km of CO2 emissions) on the European driving cycle. Expect US mileage numbers to be significantly lower. The new RS 5 is also significantly lighter, pulling 132 pounds from the previous V8-powered model's mass, despite all the turbo plumbing, to weigh 3,649 pounds. A BMW M4-style carbon-fiber roof helps keep the weight down. Audi feeds its newfound V6 power through an eight-speed automatic transmission and permanent all-wheel drive, with 60 percent of the drive nominally headed to the rear end. The hard-turning sport differential is an option. Audi's reborn RS 5 rides on five-link suspension systems at both ends to keep suspension bits precisely location and improve ride quality, while sitting 0.8 inches lower than the standard A5 Coupe. It has the usual Audi Sport array of go-faster options for its go-fastest front-engined coupe, including the more aggressive Dynamic Ride Control damping system, carbon-ceramic brakes and sharper steering ratios.