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Audi perfecting drool-worthy RS3 hot hatch

A sure-fire way of adding excitement to any Audi is removing the "A" from its model name and replacing it with "RS." Take the RS4, RS5, RS6 and RS7 as proof of this fact. Of course, the transformation from "A" to "RS" wouldn't be complete with a huge bump in power, a far more sporting suspension, enhanced brakes and a more aggressive styling treatment. That process appears to be well underway with the next RS3, which has once again been spotted testing in Germany. The larger wheels (the styles are mismatched, but the sizes look similar) are a good giveaway, as are the larger brakes and more aggressive front bumper, which sports larger intakes. The rear bumper has been modified, although we can't quite tell if the RS line's tell-tale oval exhausts have been fitted. In the past, the RS3 mules we've heard have boasted the distinctive exhaust note of a five-cylinder engine. This particular car, though, has a more conventional exhaust note, of the sort you'd expect from a high-powered four-cylinder. Expect around 400 horsepower and Quattro all-wheel drive, with power distributed likely through some form of S-Tronic dual-clutch transmission. Take a look up top for our gallery of spy shots, and keep an eye open for the RS3 in October, when it's expected to debut at the 2014 Paris Motor Show.

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.

Audi considering turbo option for longer, wider Hurac?n-based R8

The debut of the Lamborghini Huracán was (and remains) big news in and of itself, but equally as exciting is the imminent arrival of the Audi R8, which the Huracán presages. While the two will share a common architecture, don't expect that new R8 will simply be a cheaper version of the Huracán (like the current one arguably is to the Gallardo).
For one, the next R8 will be larger than the Huracán. According to emerging intelligence, Audi will make its sports car both longer and wider than the Lamborghini version. It'll also share the new Lambo's innovative carbon-fiber structure that will replace both the firewall and central tunnel. But to power it all, Audi will get more creative.
The next R8 will, like the current model and like the Huracán, offer a V10 engine at the top of the range. It will also offer the same 4.2-liter V8 as the outgoing model. But that won't be the end of the matter. Word has it that Audi is also working on a smaller, turbocharged engine to offer in certain markets that mandate smaller-capacity engines.