2011 Kia Sportage Ex Sport Utility 4-door 2.4l 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.

Kia Optima Hybrid and Plug-In detailed ahead of launch

Kia wants to be a leader in the green car world in the next five years, and the global launch of the Optima Plug-in Hybrid (pictured above) is an early step in that $10.2 billion plan. The company also has tech updates ready for the Optima Hybrid. However, both new models essentially copy Hyundai's latest improvements for the Sonata Hybrid and PHEV. According to a UK press release, the Optima PHEV will arrive in some global markets in the second half of 2016 with a 9.8-kWh lithium-polymer battery and a 67-horsepower electric motor – just like the 2016 Sonata PHEV. Kia will also aim for an EV range of 27 miles. There will be a 2.0-liter four-cylinder with 154 horsepower and 140 pound-feet under the hood for a total system output of 202 hp, and power will get to the road through a six-speed automatic. The company will expect its Hyundai sibling's 99 US mpge fuel economy, too. The PHEV will wear a few unique parts like a charging panel at the front of the driver's side, chrome side sills, and different wheels. Updated instruments will provide info about the electric powertrain, and a charge indicator on the dashboard that will let drivers check the status even when outside the sedan. The updates for the Optima Hybrid will also generally follow the electrified Sonata with a 2.0-liter four-cylinder, 51-hp electric motor, and total output of 192 hp. It will go on sale in "the majority of Kia's global markets in the first half of 2016," according to the release. However, we don't yet know whether the US will be one of those regions. Autoblog asked Kia Motor America spokesperson James Hope about both of these vehicles, and he told us: "KMA has made no announcement regarding the Optima hybrid. We will have more to share at a later date." HYBRID FUTURE PLANNED FOR NEXT GENERATION KIA OPTIMA New Optima range will include Hybrid and Plug-in Hybrid models Optima PHEV to combine high-capacity batteries with 2.0-litre GDI engine, offering more electric range than any other PHEV saloon Targeting 10% greater fuel economy for new Optima Hybrid Kia aims to improve average fuel efficiency by 25% over 2014 by 2020 Kia Motors has today revealed details of a range of advanced new powertrains planned for the all-new Optima, as part of the company's ongoing commitment to broaden its global range of low-emission vehicles.

Kia recalls 2014 Cadenza over wheel fractures

Kia is officially recalling just over 3,100 2014 Cadenza sedans. While that might not seem like a lot of vehicles, the reason for the recall is particularly troubling - the optional 19-inch wheels on these cars are prone to cracking. Doubly troubling? Cold weather tends to make things worse, so if you drove your new Cadenza during this past Winter of Hell, you'll want to get on the horn with your local dealer.
The affected cars, all of which have 19-inch wheels, were built between February 1, 2013 and August 27, 2013. Kia is in the process of notifying owners, and should be completed by the end of the month. Based on the recall documents, it doesn't appear that there have been any injuries or crashes due to the wheel fractures.
Owners will need to report to dealers, where their cars will be fitted with replacement wheels, free of charge. Scroll down for the official bulletin from the National Highway Traffic Safety Administration.