2004 Kia Spectra Lx on 2040-cars

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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.

Kia teases next-gen K5 in South Korea, foreshadows our Optima

Now that the redesigned Hyundai Sonata is down the road burning gas, Kia's loading the next-generation Optima into the chute. The automaker teased the South Korean-market K5 — our Optima — on Facebook, revealing a sedan that will bring a new attitude to the midsize competitor. The sketches largely line up with spy shots we got a couple of months ago, starting with the clamshell hood running down to a narrower, wider tiger nose grille. Two creases in the center of the hood bracket the Kia logo. We can't know what trim is on display in the rendering, but the pictured upper and lower grilles give up the mesh pattern on the current car for horizontal strakes. A pair of DRLs frame the front fascia, the Z-shaped light signature longer and more abstracted than that on the Cadenza sedan.  The profile includes a couple of signature strokes that create a wholly different impression. Moving the side mirrors to the doors emphasizes the sharp takeoff point for the greenhouse, emphasized with a chrome trim strip that could have come off a stretched Aston Martin DB11. Instead of the rear glass behind the C-pillar picking up from the edge of the backlight as on the current car and forming their own profile, the sketch show a faster glass design angled back to follow the shape of the roof. Lower down, the character line in the sketch rises from the front wheel arch to the rear door, then falls sharply to the rear wheel arch. We can't make out this line in any of the spy shots, though. The rear gets a lot edgier. It's possible the chrome greenhouse trim dips around the bottom backlight to form a single line around the car. A short decklid is backed by an integrated lip. A single taillight of dashed LEDs runs across the width, bookended by a tight V shape.  Wholesale change inside stresses the horizontal span. A slightly modified steering wheel sits ahead of a digital dash cluster. A second widescreen sits atop an instrument panel cut by wide, narrow vents and marked by fewer buttons. On the center console, the shifter's replaced with a rotary knob.  A debut could come before the end of the year, the sedan likely a 2021-model-year offering. Engines should mirror Sonata powertrains, consisting of a 1.6-liter four-cylinder and a 2.5-liter four-cylinder shifting through an eight-speed transmission, and a more powerful turbocharged four-cylinder expected to join the lineup.

Hyundai, Kia and Genesis EVs recalled for damaged charging control unit

Hyundai Motor America and Kia America are recalling a combined 147,100 U.S. vehicles over a damaged charging unit, the National Highway Traffic Safety Administration (NHTSA) said on Thursday. Hyundai will recall 98,878 vehicles, including certain 2022-2024 Ioniq 5 and Ioniq 6, Genesis GV60, Genesis GV70 Electrified and Genesis GV80 Electrified models, while Kia will recall 48,232 vehicles impacting certain EV6 models. The Integrated Charging Control Unit (ICCU) "may become damaged over time from transient high voltage and thermal cycling" and stop charging the 12-volt battery, which can result in a loss of drive power increasing the risk of a crash, the safety regulator said. Kia notes that there will be "audible warning chimes and one or more of the following: Illumination of "Check Electric Vehicle System" warning light, Master warning light, Charging system warning light, "Stop vehicle and check power supply" warning light, power down (turtle) warning light and/or reductions in motive power." Dealers will inspect and replace the ICCU and its fuse, as necessary. In addition, dealers will update the ICCU software. Material from Reuters was used in this report. Green Recalls Genesis Hyundai Kia Electric