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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.

5 new EVs that make driving fun

One of the things enthusiasts bellyache about the most is electrification. The noisiest complainers say that EVs will suck the fun out of driving and can’t possibly be as engaging as a roaring gas engine. ItÂ’s undoubtedly true that the noises EVs make are not always as visceral and thrilling, but itÂ’s also true that electrification has ushered in a new era of performance that gas vehicles simply cannot match. WeÂ’ve gathered a list of EVs that donÂ’t suck to drive. We all know by now about Tesla and its Plaid models, which absolutely set the quarter-mile ablaze with their amazing acceleration figures. The vehicles on this list don't come from Tesla. Nor does the list include some highly anticipated performance EVs that will soon hit the market, such as the new 2024 Porsche Macan. This selection may be a bit short on range compared to tamer models, but at the same time, itÂ’s hard to ignore their specs and even harder to ignore the sensation that a full-throttle electric powertrain delivers. LetÂ’s dive in to see five new EVs that make driving fun. Porsche Taycan PorscheÂ’s gas-powered vehicles are among the most exciting on the road, so itÂ’s not surprising to see the automakerÂ’s first electric effort as a home run. The Taycan is available in a staggering number of configurations, ranging from the 375-horsepower base model to the massively powerful Turbo S models with up to 750 horsepower in temporary boost mode. Classic Porsche styling and high-end tech round out the package, making the Taycan one of the most desirable EVs today. That said, the TaycanÂ’s almost $91,000 starting price puts it out of reach for a majority of car buyers, and the prices keep steadily rising along with the performance. It also trades range for performance, as the least powerful variant is the most efficient, returning 242 miles with the extended-range battery. The car can take advantage of fast charging, however, and can recover up to 80 percent of its battery capacity in just over 22 minutes.   Kia EV6 GT How about a Kia that can out-accelerate many supercars, especially from a few years ago? The EV6 GT comes with two electric motors with a combined 576 horsepower and 545 pound-feet of torque. Its 0-60 mph time lands at just 3.4 seconds, and the EV offers a top speed of 161 mph, making it one serious Korean EV. At the same time, it features the standout styling of the standard model, which gives it a striking curb presence and a futuristic look that is unique among EVs.

Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.