The average transaction price of a Cadillac vehicle rose by 9.4 percent in July, according to data from market research firm Kelley Blue Book.
In July, a Cadillac product sold for an average of $75,375, up significantly from June, when the brand’s ATP stood at $68,921. This represents an increase of 9.4 percent in just one month.
The ATP of a Cadillac vehicle has risen dramatically year-over-year, as well. The $75,375 average transaction price it saw in July of this year was 32.8 percent higher than July 2020, when it reported an ATP of $56,756.
Low vehicle inventories brought on by the semiconductor chip shortage and pandemic-related production setbacks have reduced incentive spending at General Motors and driven ATPs to sky-high levels. KBB says a “market shift toward more expensive SUVs and pickup trucks,” has also contributed to ATPs, with many American consumers willing to spend big bucks to put a well-equipped full-size truck or SUV in their driveway.
“While transaction prices marked new highs in July, new-vehicle incentives continue to fall,” Kayla Reynolds, an analyst for Cox Automotive, said in a statement. “Last month, incentives amounted to just 5.9 percent of ATP, the lowest amount in more than a decade. Excellent new-vehicle deals are certainly hard to find.”
KBB says Cadillac’s high ATPs are mainly driven by the Escalade and Escalade ESV nameplates, which consistently transact for more than $100,000. Other luxury brands have seen similar ATP gains, including Genesis, which has seen its ATPs rise by 28 percent year-over-year.
While automakers are reaping the rewards of high vehicle demand, this trend looks set to cool off in the coming months. According to KBB, elevated prices may be cooling consumer demand for new vehicles, with new vehicle sales slowing in June and July compared to April and May. Additionally, the seasonally adjusted new vehicle sales pace in July was the slowest in a year in July.
U.S. Cadillac sales increased 55.1 percent to 36,129 units in Q2 2021, with the Escalade leading the way at 10,874 units sold, followed by the mid-size XT6 crossover at 7,151 units.
Subscribe to GM Authority for more GM-related ATP news, Cadillac news, and around-the-clock GM news coverage.
Comments
I suspect this means the CT4 and XT4 aren’t selling well, while the Escalade is. We’ll see what happens when more chips and cars are available to sell.
Not many CT4s or CT5s on dealer lots right now, because production is suspended due to the microchip shortage. Right now companies are putting the chips they have in high volume vehicles towards the top of the price hierarchy.
Lots of Escalades, XT5s and XT6s in dealer lots and shrinking inventory of XT4s. ATPs of used cars are also soaring as car companies are also slashing some chip-using features, so you can get used cars that have the features you want.