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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.

2017 Audi Q7 starts at $55,750

The second-generation Audi Q7 debuted last winter, and we already drove it in the spring in Europe. Audi, however, kept US pricing for this lighter, more stylish luxury SUV a secret – until now. The 2017 Q7 starts at $55,750 (including the $950-destination charge), and that's over $6,500 more than the $49,225-base cost for the last-gen 2015 model (there was no 2016 version in the US). Buyers get some big updates when they pay the extra cash for the 2017 model. The switch to the MLB platform helps cut 475 pounds, and aluminum suspension components reduce unsprung mass. Audi's Pre Sense City safety system comes standard and can automatically begin braking the seven-passenger SUV if a crash seems imminent below 52 miles per hour. Three-zone automatic climate control and a panoramic sunroof are also on the normal features list. The options include high-tech upgrades like the company's virtual cockpit system, a color head-up display, and a 23-speaker Bang & Olufsen stereo. Audi's 3.0 TFSI V6 with 333 horsepower and 325 pound-feet of torque and an eight-speed automatic is the only available powertrain combo for the Q7 in the US. Audi originally planned to offer the 3.0-liter TDI V6, but emissions problems nixed that. The second-gen Q7 is available in three trim levels here: Premium, Premium Plus for $59,750, and Prestige for $65,250. Company spokesperson Amelia Fine-Morrison tells Autoblog the first 2017s will arrive at dealers in January. Audi of America announces pricing for the new dynamic and technological benchmark in the luxury SUV segment – the all-new 2017 Audi Q7 November 11, 2015 | HERNDON, Virginia New portfolio of available driver assistance systems includes adaptive cruise control with traffic jam assist to help take the stress out of stop and go traffic Sport sedan-like driving experience and space for up to seven passengers, latest technology and exceptional design are just some of the highlights of the all-new Audi Q7, on sale at the beginning of 2016 SUV boasts innovative suite of technologies and connectivity features, including Audi virtual cockpit, Q7 specific app for Android and Apple integration as well as Apple CarPlay and Android Auto smartphone integration With striking design and lightweight construction, the all-new 2017 Audi Q7 sets a new standard in the luxury SUV segment. The second generation of the seven-passenger SUV also adds benchmark connectivity, infotainment systems and driver assistance technologies.

Audi changes the guard at Quattro GmbH

Although it may not have the brand recognition that Mercedes-AMG does or BMW's M division, Audi's Quattro GmbH department is responsible for its most exciting products - including the RS line of performance models and the R8 supercar. For the past year and a half, Quattro GmbH has been led by Franciscus van Meel, but soon it will get a new leader.
According to reports, van Meel (46, pictured right) is being reassigned to head up the Audi R&D center in Beijing. In his place, Audi is promoting Heinz Peter Hollwerweger (60, pictured above) to the post. The move is expected to be confirmed in advance of the Geneva Motor Show, at which point we can expect Audi to claim that it was part of a planned rotation. However sources suggest that van Meel's departure came at the behest of R&D boss Ulrich Hackenberg, who was apparently unhappy with how van Meel has been handling development of the next R8 and of the R8 E-Tron project.
Why Hackenberg would have van Meel reassigned to run one of his own R&D centers is beyond us, but Hollerweger is apparently expected to be able to get the job done faster and better. Whether he'll have any major changes in store for the Quattro division and its products is another matter, but we're looking forward to finding out.