2016 Kia Optima Lx on 2040-cars

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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.

Hyundai Kia asked to pay $28.9M in patent infringement case

After years of litigation, Hyundai and Kia have lost their hybrid technology patent infringement case against Paice LLC. The jury ordered the South Korean automakers to pay $28.9 million, but according to Bloomberg, because the violation was allegedly intentional, the judge could triple that amount. The automakers have announced plans to appeal the ruling. Paice's patent dates from 1994 on a piece of tech called the Hyperdrive, and it was a way to seamlessly switch between power from an electric motor and an internal combustion engine. This lawsuit was first filed in 2012 and covered the systems in the Hyundai Sonata Hybrid and Kia Optima Hybrid. According to Bloomberg, the companies tried to argue that the patent was no longer valid, but the strategy failed. "Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit," the company said in a statement to Autoblog. Paice is certainly no stranger to litigating over the Hyperdrive patent, though. It and Toyota had a similar court battle that lasted years. Eventually, there was a settlement, and the result was Paice getting royalties for each hybrid that the Japanese automaker sold. Similarly, there's a lawsuit pending against Ford over tech in the C-Max, Fusion, and Lincoln MKZ. Hyundai Statement: Hyundai believes that the verdict returned by the jury today in the matter of Paice v. Hyundai Motor Company et al., is not supported by the evidence. Accordingly, Hyundai has requested that the presiding judge enter a judgment in its favor notwithstanding the verdict. Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit.

2021 Kia K5 fuel economy tops out at 32 mpg combined

In May, the EPA's FuelEconomy.Gov site listed three sets of initial fuel economy figures for the 2021 Kia K5, a move that helped confirm the end of the Optima name. The EPA has fiddled with the data set since then — the site doesn't list an all-wheel drive K5 anymore, for instance — but Kia has done us the favor of providing complete mpg numbers for every K5 trim except the flagship GT. The entry-level K5 LX with front-wheel drive gets 29 miles per gallon in the city, 38 on the highway, and 32 combined. This lines up with a model on the EPA site that's listed with stop/start on the 1.6-liter turbocharged four-cylinder. Most notably, the K5 LX sips a lot less fuel than the entry-level 2020 Kia Optima LX. The Optima LX houses a 2.4-liter four-cylinder with 185 horsepower and 178 pound-feet of torque — five horses up but 12 lb-ft down on the K5 — and gets 24 city, 32 highway, 27 combined. And the K5 only costs $100 more than the Optima. Among the competitive set, the in-house rival Hyundai Sonata in entry-level SE trim gives up one mile per gallon in the city to the LX, otherwise the two are equal. The Sonata SE, though, gets motivated by a 2.5-liter four-cylinder with 191 hp and 181 lb-ft. The Sonata SEL Plus with the same 1.6-liter as the Kia but costing $4,000 more returns 27 city, 36 highway, 31 combined. Outside the fold, the Toyota Camry ultimately evens out the fuel economy score in delivering 28 mpg city, 39 highway, 32 combined. The Honda Accord edges all comers with 30 mpg city, 38 mpg highway, and 33 combined thanks to its continuously variable transmission; the other three shift through eight-speed automatics. The front-wheel drive K5 LXS, EX, and GT-Line all return 27 mpg city, 37 mpg highway, and 31 mpg combined. The figures match a K5 model on the EPA site that omits the stop/start system on the 1.6-liter, but we can't see where Kia has mentioned a stop/start system in its K5 release materials. About 100 pounds difference in curb weight covers all four trims that we have info on so far. This would appear to indicate the lack of the fuel-saving tech on the three trims causing slightly lower fuel economy as opposed to extra luxuries weighing matters down. Only two trims for now come with the option of all-wheel drive, the LXS and GT-Line. When the K5 GT arrives, it will only come with all-wheel drive. Check the box to send power to all the wheels, and both variants deliver 26 mpg city, 34 mpg highway, 29 mpg combined.