2020 Kia Sorento 2.4l L 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.

Kia previews drop-top Optima for SEMA

You don't see a lot of four-door convertibles these days, but that's just what Kia has in store for the SEMA show this year. It's called the A1A, and it's based on the Optima sedan you can pick up at your local showroom. Just don't expect this one to go into production anytime soon. The Kia Optima A1A concept is just one in a series of regional specials that the Korean automaker is preparing for the tuner expo in Las Vegas. It's already given us glimpses at a Sorento inspired by the Northwest Coast, and a Forte Koup that pays tribute to the South. The Optima A1A joins in on the action to represent Florida, adopting not only an open-air body-style but also suicide rear doors and 20-inch chrome wheels fitted on a dropped coilover suspension. It's all done up in bright teal with an off-white leather interior. The turbo four produces the same 245 hp as stock, but is fitted with a high-performance exhaust. It's one of six concepts - four of them never seen before - that Kia will be presenting at SEMA this year, and we're looking forward to seeing what the next one will look like before there'll all presented in full on Tuesday. Related Video: KIA'S 2015 SEMA PRESS CONFERENCE INFORMATION America's wanderlust is found from coast to coast and everywhere in between. The A1A Optima takes inspiration from the iconic Florida A1A highway by letting the sunshine in and taking the all-new 2016 Optima in a new direction with its sliced top, shortened windshield and room for four. Reinforced steel tubes have been discretely hidden within the body so that the vehicle retains a rigid structure. The back doors of the A1A Optima swing open on rear-mounted hinges, adding a touch of whimsy and fun while complementing the roadster style. A gleaming set of 20-in. wheels are bolted to a Ksport coilover suspension, which dramatically lowers ride height. Soft butter-cream leather bucket seats up front and custom double buckets in back are separated by extended armrests and a custom center console. The powerful 245-horsepower turbocharged four-cylinder engine is combined with a high-performance exhaust. Kia Motors America will unveil four all-new custom vehicles at its press conference Tuesday, November 3 at 9:00 AM, booth #10809

Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.