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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.

2018 Kia Niro bests Prius and Ioniq with IIHS Top Safety Pick Plus rating

The Insurance Institute for Highway Safety has recently tested the 2018 Kia Niro, and the car came out well. The organization gave it the Top Safety Pick+ award, which goes to cars that meet the organization's most stringent safety requirements. While good on its own, the Niro's new commendation also stands out because its corporate cousin, the Hyundai Ioniq, and its close competitor the Toyota Prius only received the plain Top Safety Pick award. The Niro earned this score by getting a "Good" rating, the highest IIHS bestows, in every single crash test, including the difficult small overlap test for both passenger and driver. It also received a "Good" rating for its optional HID headlights, and the optional forward collision prevention system managed to prevent a collision at speeds up to 25 mph. This brings us to a caveat to the Niro's scores, though. The highly rated headlights and forward collision prevention system are options that don't come standard on base models of the Niro. The headlights only become available on the second-highest EX trim, and are standard on the top Touring trim. The forward collision prevention system is not available on the base FE trim, but it is an option starting with the second-lowest LX trim, and is standard on Touring. Related Video: Featured Gallery 2017 Kia Niro Hybrid: First Drive View 20 Photos Image Credit: Kia Green Kia Safety Crossover Hatchback Hybrid kia niro

2020 Kia Telluride is an American-made SUV, for America

Given consumers' ravenous appetite for them, it's little surprise that Kia is introducing a larger, more upmarket SUV in the Telluride as the newest entry in its lineup. But the automaker turned to classic SUVs of yesteryear as influences for the intentionally boxy and very American design that it hopes will translate with consumers. Dubbed a midsize by Kia, the Telluride will slot above the entry-level, compact Sorento as the flagship of the Korean automaker's utility-vehicle lineup. Michael Cole, Kia's North America chief operating officer, said the midsize segment is forecast to grow from 1.6 million units sold in the U.S. in 2018 to 1.8 million in five years. "This was somewhere we needed to be," he said. It's also the first Kia designed specifically for the U.S. market, with its off-road features like on-demand electronic all-wheel drive transferring torque between the front and rear wheels and its strong, stiff body, further emphasized by its unveiling in Detroit on a landscaped "torque track" assembled in surplus space on the Cobo show floor. It'll also be built at Kia's plant in West Point, Ga. "It's very much a U.S.-targeted vehicle," Cole said. "We will have some export. But the message is, made in America, made for America, it's a U.S.-centric car." Designers at Kia's design center in Irvine, Calif. "wanted to get back to a traditional SUV styling," Chief Designer Tom Kearns said. "So many EVs and SUVs these days are trying to look sporty and more car-like, more sedan-like. We didn't want to go with that approach." Kearns said his design team members referenced old-school SUVs like the Ford Bronco, old Land Rovers and the original Chevrolet Blazer when creating the Telluride, Kia's largest SUV yet. "It's not retro, but we like the genuine feel and look, the purity of old-school SUVs with the long hoods, little bit more upright windshield, not a lot of glass angles, tumblehome a little more upright, just feels more purposeful and genuine to us," he said. "Our goal is very clean, very simple, not a lot of ornamentation, just a pure, nice form that's hopefully conveying a clean, functional appearance." Inside, the designers took largely the same approach, with a clean console that emphasizes horizontality and width, matte-finished wood and simulated brushed metal accents and big grab handles flanking the shifter that emphasize the vehicle's sense of adventure.