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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.

Honda motorcycles most stolen, just like Honda autos

It comes as no surprise that Honda's Civic and Accord are the most stolen cars in America, but as it turns out, thieves like the company's motorcycles the most too, according to a study by the National Insurance Crime Bureau (NICB). Out of the 46,061 two-wheelers stolen in 2012, 9,082 of them were Hondas. While that's bad news for Honda motorcycle owners, at least motorcycle theft went down slightly from 2011, which had 46,667 reported thefts. Motorcycle theft recoveries, on the other hand, were just 39 percent.
Yamaha is up next in the theft rankings (7,517), then Suzuki (7,017). The numbers drop a bit for fourth and fifth place, Kawasaki (4,839) and Harley-Davidson (3,755). These five brands are far and away the most stolen motorcycles: sixth place, apparently held by scooter, dirtbike and ATV maker Taotao, dropped to 914 theft reports.
California had the most reported thefts (6,082), followed by Florida (4,110), Texas (3,400), North Carolina (2,574) and Indiana (2,334). By city, New York City had the most reported thefts (903), followed by Las Vegas (757), San Diego (633), Indianapolis (584) and Miami (535.

Honda: We won't be able to sell ICE cars in China by 2025

China's push to clean up the country's woeful air pollution levels could mean the end of the traditional internal combustion engine there. In an interview with WardsAuto, Keiji Ohtsu, Honda's chief technology strategy officer at the company's automobile R&D center, predicts a lineup only of models with electric assistance in the country within a decade. He also discusses the Japanese automaker's green car goals worldwide. Ohtsu foresees China adopting some of the strictest fuel economy standards in the world in the coming years. "In 2025, we don't expect to be able to sell conventional internal-combustion engines [there], meaning we will be selling mostly hybrids including plug-in types," he said to WardsAuto. China's push to clean up its air comes as major cities continue to struggle with massive levels of pollution. For example, Beijing recently banned half of the cars from the road due to dire levels of smog. To fight back, the government has pushed automakers to launch more plug-ins, and the strategy has shown some success. China's BYD has already become the world's largest producer of plug-in vehicles in 2015. Even outside of China, Honda intends to become a far greener automaker in the coming years. In the near term, the company expects 20 percent of its global volume could be hybrids by 2020. According to Ohtsu, as much as 80 percent of Japanese deliveries could have some form or electrification by that time, but the US would be closer to 20 percent. However, the company sees hybrids more as a stepping stone than as the future of motoring, and the mass adoption of hydrogen is the real goal. "We think that fuel-cell vehicles will come into the mainstream in 2030, along with battery-powered electric cars. We also feel that going forward hydrogen will be the best fuel alternative," Ohtsu said to WardsAuto. Honda's experimental FCEV (pictured above) already hints at the brand's future direction.