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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.

Next-gen 2021 Kia Sorento spied testing in the Alps

Kia just launched the new three-row Telluride into the world, but that doesn't mean its original seven-passenger model is going away. Far from it. The camouflaged vehicle you see here is the next-generation Sorento caught testing in the Alps while undergoing some strenuous trials. One of those happened to be towing a BMW X5, as seen in the photos. Due to the heavy amount of cladding and wrappings, it's difficult to pick out specific styling elements. However, we imagine the front fascia is going through a massive change up. It's tough to say what direction they're heading, but the openings do mimic what we see on the vehicle today. The current Sorento doesn't have an upright, tough appearance, and the prototype we see here doesn't appear to be a massive change in the status quo. Kia made the Telluride its big, butch crossover, so differentiation with that SUV is most likely necessary. Moving along the side, Kia appears to have changed up the mirror position, placing them below the window line on the doors instead of above in the A-pillar area. We can't see the door handles or body lines, but we'll assume Kia has something new and interesting cooked up under there. Finally, the most mysterious part of all is the rear end. Kia broke out the massive body armor for this one, making sure nobody can tell what's going on underneath. Perhaps the rear-end design is where we'll see the biggest changes for the Sorento. We don't imagine there will be anything extreme like a chopped and angled roof/rear window for styling purposes, though, especially if the Sorento intends to keep all three rows open for business. That said, the existence of the Telluride could prompt some changes to the vehicle's purpose in Kia's lineup. Even though Kia gave the Sorento a light refresh for 2019, this next-generation model is probably coming in the next couple years. Kia used a very light brush for that mid-cycle refresh, and this update will signal a totally new generation of the SUV. We'll expect to see new powertrains, possibly with electrification in the form of a hybrid or plug-in hybrid come into the fold. We didn't get a look inside, but given the current Sorento and luxurious new Telluride, we'd have high hopes for something quite nice.

Kia gives K900 Matrix spoof for Super Bowl commercial

Kia made a splash when it announced that Laurence Fishburne would revisit Morpheus, his bespectacled, blade-wielding badass character from the Matrix trilogy for a Super Bowl commercial. When we originally broke that story, we offered up a brief synopsis of the spot, produced by David&Goliath.
Now, we have an extended, 90-second version of the 60-second Kia K900 commercial that's slated to air during this weekend's Super Bowl. While it does stick to the brief we reported on a few weeks back, there's a big, ridiculous twist in the last bit of the video, not to mention a few easter eggs for fans of the movies. We won't spoil it for you, so scroll down and have a look.
After you've watched the video, scroll just a bit further down and have a look at Kia's official press release on the commercial.