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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.

Recharge Wrap-up: Eberhard helps Chinese EV maker in US, 'Hail a Honda' at Austin City Limits

Honda is partnering with nonprofit ridesharing service Ride Austin to provide "Hail A Honda" service during the Austin City Limits Music Festival. For both weekends of the festival (Sept. 30 – Oct. 2 and Oct. 7 – Oct. 9), attendees can ride to the event for free in a special liveried 2016 Honda CR-V. The Ride Austin app will feature a "Honda at ACL Festival" tab to hail rides, and users will get a free bandana and water. 2016 marks Honda's eighth year as an Austin City Limits sponsor, and the automaker hosts its own stage at the event. Read more from Honda. Tesla cofounder Martin Eberhard is helping a Chinese EV company enter the US market. Chongqing Sokon Industry Group says it has hired Eberhard as a consultant with a two-year contract. Sokon has created a US-based subsidiary called SF Motors, and Eberhard will manage "the integration of the world's top talent for new energy vehicles, to promote the company's product positioning, R&D, design, technical innovation, talent pool, marketing, in the United States." Since helping to found Tesla, Eberhard has worked on EVs with Volkswagen, Atieva, and as an investor in Alta Motors. Read more at Electrek. A supplier for the Tesla Model 3 describes the automaker's perfectionism. Fuji Technica, a die maker supplying aluminum dies for the Model 3, describes its relationship with Tesla in an article from the Nikkei Asian Review. The company calls Tesla a demanding customer, asking for very specific shapes despite the difficulty of working with aluminum. Fuji Technica must work some dies by hand to achieve Tesla's "meticulous specifications." The company is proud of its achievements, though, especially considering its turnaround after years of financial troubles. Read more from the Nikkei Asian Review, and at Inside EVs. Related Gallery Tesla Model 3 View 18 Photos News Source: Honda, Electrek, Inside EVs, Nikkei Asian Review Green Marketing/Advertising Honda Automakers Tesla Transportation Alternatives Electric recharge wrapup

Formula One speeds towards radical thousand-horsepower shakeup

The teams, the drivers, the fans, the circuits... few, if any, were satisfied with how Formula One has shaped up since the current regulations took hold last year. But that doesn't mean they aren't working on it. At a recent meeting of the F1 Strategy Group, the leading parties in the sport outlined a new framework that would radically shake up the cars themselves while keeping costs in check. And the biggest change could see the engines producing around 1,000 horsepower. Although a proposal put forth by Ferrari to ditch the current V6 hybrid engines in favor of new twin-turbocharged units was rejected by Honda and Mercedes, the members of the group approved in principal to increase the fuel flow in the existing engines to dramatically boost output. As it stands, the current 1.6-liter turbocharged V6 engines develop around 600 horsepower, with an additional 160 or so kicked in by the electric Energy Recovery System, for a combined output of about 760 hp. What's not clear at the moment is whether the increased fuel flow would necessitate either the return of mid-race refueling (currently banned) or the installation of larger fuel tanks. Red Bull and McLaren also submitted proposals to radically redesign the shape of the cars as well, however a more evolutionary approach was adopted instead. Though far from finalized, the new design would keep the same basic form of the current chassis, but with adjustments to make them more aesthetically pleasing while producing more downforce. Wider tires are also said to be part of the mix. With more power and more grip from the tires and aero, the resulting cars would most certainly end up going much faster than the current ones, which are already starting to nudge the lap records at some of the circuits, many of which were set during the V10 era. The F1 Strategy Group is made up of representatives of the FIA, Formula One Management and six leading teams. The next step will be for the teams' technical directors to iron out how to implement what their bosses have agreed to. If they settle the details fast enough, the revised regulations could be pushed through in time for next season. News Source: AutosportImage Credit: Mark Thompson/Getty Motorsports Ferrari Honda Infiniti McLaren Mercedes-Benz F1