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Cadillac Vehicle Incentives Dropped 37 Percent During The Fourth Quarter Of 2021

Cadillac vehicle incentives dropped nearly 40 percent year-over-year in the fourth quarter of 2021, but still remained higher than at any of GM’s other vehicle sub-brands.

According to Cox Automotive, incentive spending at Cadillac dropped by 37 percent year-over-year from $5,716 in the fourth quarter of 2020 to $4,172 in the fourth quarter of 2021.

GM slashed incentive spending across all four of its brands by 65 percent in Q4 2021, dropping to an average of $1,919 per vehicle. Cadillac had the highest vehicle incentives offered throughout the quarter, followed by Buick at $3,207, Chevy at $2,672 and GMC at $1,924.

Cadillac’s quarterly sales also dropped 47.8 percent to 22,385 units in Q4 2021, which was the largest year-over-year decrease among the four GM brands. Only the Escalade and Escalade ESV saw small increases of 1.7 percent and 3.1 percent, respectively.

With incentives drying up, it should be no surprise that Cadillac’s average transaction prices rose significantly year-over-year in Q4 of 2021. The automaker’s ATPs climbed 29 percent to a significant $77,143 – over $17,000 more than in 2020. Every Cadillac model on sale enjoyed higher year-over-year ATPs last quarter, however the biggest increases were with the Cadillac Escalade and Escalade ESV. The ATPs for the regular Escalade rose 12 percent to $107,336, while ATPs for the extended-wheelbase Escalade ESV rose 10 percent to $108,093.

GM sales fell by 43 percent to 436,358 vehicles in the fourth quarter of 2021. Cox says it expects the automaker to still report solid earnings, however, as it “slashed incentives and garnered hefty average transaction prices (ATP) despite lower sales.” Cadillac models will surely be a large contributor to these earnings, with the luxury brand enjoying very strong profit margins on its crossover models and the Escalade and Escalade ESV full-size SUVs.

Auto production output is expected to remain low in 2022 as the semiconductor chip shortage persists. It’s therefore unlikely incentive spending will rise very much at any of GM’s four brands this year, so we anticipate elevated ATPs at Cadillac, Chevy, Buick and GMC for the foreseeable future.

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Sam loves to write and has a passion for auto racing, karting and performance driving of all types.

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Comments

  1. This should be the title of this article:

    “Cadillac’s quarterly sales also dropped 47.8 percent to 22,385 units in Q4 2021”

    That’s insignificant in the luxury segment.

    Lexus sales were up 6% in 2021 to 760,021.

    Reply
  2. I have been a gm fan I bought a 2014 buick enclave and a 2019 corvette my budget is capped at $100k, 0 discount on escalade still they keep rising the price on 2022 escalade model and for 100k you not even gona get a heated seats. sick of gm terrible experience

    Reply

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