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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 expands Takata recall for older CR-Vs

Honda has added another 127,000 bad Takata airbag inflators to its growing recall. This latest round affects 2003 and 2004 CR-V crossovers and brings Honda's total inflator tally to 3.4 million units. This marks the first time that the 2004 CR-V has been included in the airbag recall. Repairs will be conducted free of charge, and Honda notes that "it has sufficient replacement parts supplies to begin recall repairs of the added vehicles immediately, nationwide." The company's recall repair is nearly half complete, with 47.1 percent of the bad inflators replaced across the US. "American Honda continues to urge owners of Honda and Acura vehicles affected by the Takata airbag inflator recalls to get their vehicles repaired at authorized dealers as soon as possible," the company said in the attached statement. "Vehicle owners can check their vehicles' recall status at www.recalls.honda.com for Honda owners or www.recalls.acura.com for Acura owners or by calling their authorized dealer." Read on for the official release. Statement by American Honda Regarding Expansion of Nationwide Recall of Certain Takata Passenger Front Airbag Inflators Dec 23, 2015 - TORRANCE, Calif. Nationwide recall of passenger front airbag inflators expands to include approximately 127,000 inflators in 2003-2004 CR-V vehicles not previously subject to recall or safety improvement campaign No change to national recall of driver front airbag inflators Honda's national Takata airbag inflator recall repair completion rate is 47.1% Honda announced today that it will expand a national recall (15V-370) to replace, free of charge, Takata passenger front airbag inflators installed in certain 2003-2004 CR-V models sold in the United States following a recent defect determination by Takata, the airbag inflator supplier. This expansion will add approximately 127,000 passenger front airbag inflators not previously subject to either a recall or safety improvement campaign. Approximately 78,000 of the affected 2003-2004 CR-V vehicles included in existing passenger front airbag inflator recalls and Honda's voluntary safety improvement campaigns (14V-353 and 14V-700) will also transition into the new recall. The same free repair - replacement of the passenger front airbag inflator - will be completed under the new national action. This updated recall (15V-370) now includes approximately 3.4 million passenger front airbag inflators now requiring replacement in this action.

NHTSA investigating 550k Pontiac G6 models, 320k Honda Odysseys

According to two separate reports in The Detroit News, the National Highway Traffic Safety Administration is launching investigations into 550,000 Pontiac G6 (pictured above) and 320,000 Honda Odyssey (pictured right) models. The G6 models are all from the 2005 to 2007 model years, while the Odyssey minivans are from the 2003 and 2004 model years. The two NHTSA probes are not related.
In the case of the G6, this is an upgrade to an original investigation that started in February after NHTSA received "hundreds of reports" that the brake lights on these cars may malfunction. According to The Detroit News, the lights may come on when the brake pedal is not depressed, and likewise, the brake lights may not illuminate when the pedal has been pushed. General Motors was able to provide NHTSA with a significant number of warranty claims, including 1,100 reports that could potentially relate to this problem, one of which indicates a vehicle crash.
For Honda, the NHTSA probe concerns airbags that may deploy unexpectedly. The government agency received six complaints from 2003-04 Odyssey owners saying that the front airbags suddenly went off without a crash. The Detroit News reports that three of the six owners sustained injuries from these incidents. Additionally, NHTSA has received 41 complaints from owners saying the vehicle's airbag warning light had illuminated.