The average transaction price of a Cadillac vehicle reached over $74,000 in August 2021, according to data obtained by Cox Automotive.
The market research firm reports Cadillac ATPs reached $74,332 last month – representing a 32 percent year-over-year increase. The impressive high ATPs were mainly driven by the Cadillac Escalade full-size SUV, which sold for an average of $99,798 in August.
“Consumers continue to pay near $100,000 for a new Cadillac Escalade, and more than 2,000 new Escalades were sold in August,” Cox Automotive points out.
Cadillac wasn’t the only luxury brand to see higher transaction prices in August. Acura, Genesis and Mercedes-Benz also saw year-over-year ATP gains in excess of 20 percent last month. Additionally, luxury vehicle sales accounted for 16.2 percent of the total market share in August 2021, up from 14.4 percent in August 2020.
Analysts expect the average transaction price of new vehicles to continue to climb in the coming months as automakers continue to grapple with the effects of the COVID-19 pandemic and microchip shortage.
“With the ongoing inventory challenges that auto manufacturers are facing across the board, coupled with historically low incentive spending, car shoppers end up being the ones paying the price, quite literally,” said Kayla Reynolds, an analyst at Cox Automotive. “New-car prices just continue to climb, month after month.”
While high average transaction prices are good news for automakers like General Motors, the negative effects of this trend are beginning to surface. Total U.S. vehicle sales last month totalled just 1,092,302 units, which is among the lowest sales totals for August in a decade and the lowest monthly sales volume since the height of the COVID-19 pandemic in April 2020. Ramping up production and increasing incentive spending therefore may be crucial to increasing sales in the coming months.