Cadillac has had a rough couple of years in the United States amid a market hungry for crossovers, and a vehicle lineup heavy on sedans. However, if there’s a silver lining, Cadillac is pumping out some of the best average transaction prices (ATP) in the luxury segment.
Automotive News reported on Monday that the average Cadillac now sells for $54,488. The figure is up from $48,752 in 2016. Part of the higher prices come from a lower sales volume, but the higher transaction prices aren’t reserved solely to the Escalade—the SUV certainly helps, however.
In fact, the Cadillac CTS continues to post record transaction prices. The sedan’s ATP in 2017 was $58,042, up from $46,927 in 2013. The Escalade and Escalade ESV also continued to grow with ATPs of $84,260 and $88,072. The ATS was the only vehicle that registered a significant drop in ATP at $41,428 in 2017 compared to $43,828 in in 2016. It’s worth noting that the ATS and CTS’ ATPs also include V-sport and V-series models.
Cadillac hopes it will keep up the ATP success as it prepares to launch the 2019 XT4 compact crossover, which should help add some much-needed volume to the brand. The compact luxury crossover will debut at the 2018 New York International Auto Show, and likely launch by the end of 2018.
Comments
Low volume vs. high TAP’s . Part of this has to be the sales of the XT5 and Escalade . Cadillac is selling so few CT6’s that it can’t be a huge part of the average price increases . Also the XTS has outsold it’s big brother most of the year and has to be part of this .
I worry though that Cadillac may be pricing itself right out of the market soon and people will scoff at paying such high prices for a Cadillac . Withe introduction of the XT4 these numbers may go down as it will be a cheaper car than the XT5 and Cadillac should start to be a bit more concerned with market share , they can’t continue to hike the price of their vehicles to try and compete with others in the segment . A high price doesn’t equate to a product being a competitor . Image however and quality will .
The CT6 isn’t the problem. It outsells the Jaguar XJ, Jaguar XF, Lexus LS, BMW 7 series, Audi A8,and Lexus GS.
The CT6 sometimes even posts higher monthly sales volume than the smaller and less expensive Cadillac CTS.
If Cadillac wants more volume, they need to invest in more crossovers RIGHT NOW as well as an updated CTS and ATS.
Based on this info if the CT6 is NOT included.. then they are literally giving the car away for free.. which I know for fact is not the case. That car is selling better than the CTS in some months and at way higher ATPs.. meaning its quite possible that not including it in ATP might have effected Cadillac ATP in the negative.. making it lower than it actually is.
ATP will drop once Cadillac introduces cheaper, higher volume models. Keep in mind, the ONLY vehicle Cadillac currently sells that starts under $40k is the ATS, which barely sells. The upcoming XT4 will start under $40k, who knows what the CT5 will start at, perhaps around 40, certainly cheaper than the $46k CTS and XTS. Then there’s talk of a smaller sedan and a sub-XT4 crossover, both of which would also start under $40k.
“Cadillac hopes it will keep up the ATP success as it prepares to launch the 2019 XT4 compact crossover, which should help add some much-needed volume to the brand.”
The only way it won’t decline is if the ATP of the XT4 is $54,488 which we all know won’t happen…….
Doing a little modeling; adding in 2,500 XT4’s will drop ATP to about $52,000