The average transaction price of a new Cadillac vehicle was up more than 15 percent year-over-year in February 2022 as GM dealers continue to grapple with limited inventory and sustained high demand.
The average Cadillac sold for $73,343 in February 2022, according to Kelley Blue Book. This was up 15.7 percent from February of 2021, when the luxury brand’s vehicles sold for an average of $63,372. While Cadillac vehicle prices remain elevated from this time last year, they are beginning to trend downward, with the brand’s ATPs falling from $79,910 in January – a difference of 8.2 percent.
Cadillac’s high ATPs for February can be largely attributed to the hot-selling and rather pricy Cadillac Escalade, which starts at $76,145 including the destination freight charge for the entry-level Luxury trim and extends to over $105,000 for the range-topping Premium Luxury Platinum. Incentive spending is also low throughout the automotive industry at the moment due to low inventory levels, contributing to higher ATPs.
Michelle Krebs, executive analyst for KBB sister company Cox Automotive, said automakers may now be looking to raise prices even further to offset rising commodity costs, which have come about due to the ongoing conflict in Ukraine.
“With prices for oil and gas, along with commodities like metals used to build vehicles, […] automakers may be compelled to try to offset their increasing costs by raising vehicle prices,” Krebs said. “The Ukraine situation is causing additional disruption to the automotive supply chain which makes the likelihood of growing inventory, which remains stuck at low levels, less of a sure thing.”
KBB says the average luxury buyer paid $64,626 for a new vehicle last month, which was down $183 month to month, but still over $2,500 above the average sticker price. For comparison, luxury vehicles were selling about $2,400 under MSRP at this time last year.