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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.

Mercedes considering Audi Allroad rival

The Audi Allroad is something of an anomaly in the automotive world. Its competitors are limited to the recently released Volvo V60 Cross Country and perhaps the far cheaper Subaru Outback. The lifted premium wagon hasn't exactly done great for Audi, only selling a few hundred examples each month. Its best sales year was 2013, and even then, only 5,300 left US showrooms. Despite these limited prospects, word from Australia is that Mercedes-Benz is looking at launching its own competitor to the Allroad. "We are looking at every single niche, so we are studying this [Allroad] at the moment, but it is not confirmed," Matthias Luhrs, VP of sales and a member of the product management at MB, told Motoring.com.au. "We are looking obviously at C-Class and E-Class, but no confirmation at the moment." Fortunately, Luhrs recognizes that the Allroad isn't exactly a smash in the US. "In the US, no matter how long, short, high ... they don't like station wagons," Luhrs said, while adding that the Allroad concept is "developing quite successfully" in Italy and southern Europe. And for those hoping for a lifted C- or E-Class sedan, Luhrs also put the kibosh on that, saying, "We are not studying that." So what does this tell us? Well, it's still far from a sure thing that Mercedes will launch a lifted C-Class or E-Class Estate. And even if the company does go ahead with it, like the rest of the brand's long roofs (E-Class aside), don't expect to see it on US roads.

Mercedes-AMG once again joins forces with Cigarette Racing

Any time there's a new loins-quaking Mercedes-AMG introduced, you need to keep your eye on the aquatic horizon around the time of the Miami International Boat Show for the Cigarette tie-in to come roaring into port. The SLS AMG had its 2,700-horsepower, 46-foot Rider, the C63 AMG Black Series got a 1,350-hp, 50-foot Marauder, the G63 AMG got a 1,750-hp, 43-foot Huntress, and the SLS AMG E-Cell got a matching wild yellow 2,200-hp, 38-foot electric concept boat. Now that we're in 2015 with another AMG and another boat show, we have another Cigarette. Mercedes hasn't dropped the goods on this one yet, but it will be twins with the AMG GT. After that, we're guessing it will have a can't-miss-it paint job, be in the 40-foot range, and have something like 2,000 hp. The show is February 12-16, we'll have all the info for you then. Featured Gallery Mercedes-AMG and Cigarette Racing Auto News Mercedes-Benz Coupe Luxury Performance mercedes-amg mercedes-amg gt