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Cadillac Escalade Getting Huge Dealer Markups

The Cadillac Escalade is an icon of luxury, with the latest fifth-generation elevating the SUV nameplate to ever-higher levels thanks to a new platform and the latest technology features. As such, demand for the Escalade is strong, which, paired with low supply as a result of the ongoing microchip shortage, has led some dealers to apply huge markups.

One example is Carlisle Cadillac Buick GMC in Carlisle, Pennsylvania, which, as of this writing, has listed a new 2022 Cadillac Escalade Sport with the Touring Package for $136,280, a whopping $30,000 over MSRP. Another example is Larson Cadillac in Fife, Washington, which listed a new 2022 Cadillac Escalade Premium Luxury for $123,350, also $30,000 over MSRP.

Further examples include Delaware Cadillac in Wilmington, Delaware, which listed a new 2022 Cadillac Escalade Premium Luxury Platinum for $142,300, $25,000 over MSRP, or Wagner Cadillac in Tyler, Texas, which is listing a new 2022 Cadillac Escalade Sport Platinum for $140,090, also $25,000 over MSRP.

The list goes on and on. Although some dealers are still offering the Cadillac Escalade at MSRP, huge markups seem to be rather commonplace at the moment, which isn’t all that surprising given the SUV’s impressive popularity.

For now, Cadillac sales are down across the board for all models, with the exception of the Escalade. To note, these numbers reflect lower supply as a result of production hiccups stemming from the global microchip shortage, yet, in the face of this, the Cadillac Escalade continues to drive impressive sales all the same.

Sales Results - Q1 2022 - USA - Cadillac

MODELQ1 2022 / Q1 2021Q1 2022Q1 2021
CT4-27.94% 1,8932,627
CT5-23.57% 3,3434,374
ESCALADE-34.73% 6,4249,842
ESCALADE ESV* 4,081*
XT4-32.14% 3,7015,454
XT5-43.09% 4,9938,773
XT6-36.89% 3,7805,990
CADILLAC TOTAL-24.31% 28,21637,277

As a reminder, the fifth-generation Cadillac Escalade was introduced for the 2021 model year, with the latest 2022 model year debuting only a few small changes and updates. Under the hood, the latest Escalade is available with two powerplant options, namely the naturally aspirated 6.2L V8 L87 gasoline engine, rated at 420 horsepower and 460 pound-feet of torque, and the 3.0L I6 LM2 turbodiesel Duramax, rated at 277 horsepower and 460 pound-feet of torque.

Under the skin, the Cadillac Escalade rides on the GM T1 platform, while production takes place at the GM Arlington plant in Arlington, Texas.

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Jonathan is an automotive journalist based out of Southern California. He loves anything and everything on four wheels.

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Comments

  1. Come on 10% interest rates.
    Punish those stupid enough to pay over MSRP.

    Reply
    1. Evan: I must agree.

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    2. They definitely have more money than brains and that 30K will be lost in a year or 2

      Reply
      1. It was lost 1 second after they paid it.

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      2. There is a sucker born everyday!

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    3. anyone buying one of these will not have that high of a rate if they finance at all… The book values are 25-40K over MSRP’s.

      Reply
      1. I purchased a XT5 at Wagner. With 68,000 miles on it , Im shopping Escalade and XT6
        I will not shop Wagner ever again.
        Wagner’s priorities do not seem to be the customer.

        Reply
    4. I Can Attest To The Delaware Cadillac Dealership….I Was Interested In A Black Onyx Model…The First Thing The Salesman Stated Was..”You Know Whatever You Order There Will Be A Additional $25,000 Mark-Up”!…I Said Not For Me There Won’t!..I Got Up And Walked Out!…I Never Will Deny A Dealership Profit…But GREED…No Way!

      Reply
      1. It ridiculous what they expect people to pay for a car these days. I refuse to pay over MSRP for any car. Infact I have only done that once and never again!

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  2. You can add one more dealership to the list: Penske of South Bay (California) who also has $30,000 over MSRP on each one.

    Being in the auto business and having been so for 20 years now, part of this has been brought on by the customers who for years have done every single thing they could to deprive dealers of any real profits on new cars (this also applies to the junk dealers add to cars to help make up profit). If customers didn’t nickle-n-dime dealers to death, this may not be so wide spread. But at this moment, dealers are able to make profits, and they are doing so.

    With that said, I don’t believe any dealers should be doing this. But the only way to stop it (outside of GM forcing them to stop) would be for customers to just plain stop buying the products! We even see this at the dealership I’m at now. Mazda just released the “all new” CX50 SUV and the morons are already coming in throwing cash down to be the first ones to get it. This is lunacy at best. But because of that, dealers are already putting $5,000 mark-ups on it. Seriously? On a freeking Mazda? Thus, I must agree with Evan above and something needs to be done to punish those morons dumb enough to pay over MSRP on anything.

    Reply
    1. That is hilarious lying bs.
      Stealerships have been shafting customers for decades on maintenance and repairs. That more than offsets any loss dealers made on selling cars to tough buyers.
      Plus with Carvana and even Tesla the Dealership is going the way of the Dodo Bird and good riddance to them.

      Reply
      1. Evan: Now why would you go and call what I said hilarious lying bs? Have you ever worked in a dealership? If yes, in what position? I’ve been in service (short time), sales, sales manager and now fleet department. Again, this comes to a total of 20 years experience. You have?

        What I said is very true. Yet what you bring up is also very true. But not all dealers shaft customers in service and many dealers are very good/honest. But go back and truly read what I said. I do NOT think dealers should be adding this markups. I do NOT feel it’s right. I don’t like it and do my very best to avoid it at all costs. You have bad in every business and the car business is certainly towards the top. But what I am talking about is cause and effect. When customers beat the death out of dealers on a sale and drive 50 miles to save an extra $100 on a purchase, what would you call that?

        So I’m certainly interested in your experience in this business and how you come to the conclusion that what I said is lying bs.

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        1. Yeah, I’m calling BS on this crap too:

          ” If customers didn’t nickle-n-dime dealers to death, this may not be so wide spread. ”

          Customer are screwing over the poor dealers?
          Are you some sort of comedian?

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          1. Poor dealerships uh!!! Profit is not a bad word. People start a business to make a profit. Before the pandemic the customer had the power, that is currently not the case. Realistically, this will not last forever, in the meantime. Dealerships will make all the money possible. Its somewhat funny, cost of food goes up but you don’t negotiate with the super market, price of gas goes up, but you don’t negotiate with the gas station. Price of medical expenses go you, but you don’t negotiate with the doctor. UH!!! like I said, somewhat funny.

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        2. The few bad apples ruin it for everyone.
          Golden rule of life.

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        3. No your kidding, huge markups on Caddy’s, unbelievable, can’t be true? Ah poor dealerships, their getting nickeled and dimed to death and now it’s pay back time. Does any body know the location of the pity party, I need a good cry!

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    2. If have been in a auto business for 20 years, you know as well as I do that selling a new car is not where the money is made at any dealership. It is the service department and the parts department that carrier the dealership. And selling used cars is always been more profitable than selling new ones.

      Reply
  3. I was in last year for an oil change and my sales guy was pretty up front about it. If you ordered, it was msrp. Anything on the lot for sale was over. And there was nothing on the lot. Seemed reasonable. He also said that he was presold for about a year on slade’s. So order today, well in November when I was there, and you’d expect it around november 2022. He managed to get a Yukon from a sister dealership at msrp. It is really just supply and demand. Shopped for a house lately?

    Reply
    1. Fortunately the demand will crash soon enough.
      Interest rates can’t rise fast enough.

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      1. Oh qhat happened to GM cracking down on dealers who mark up vehicles over MSRP! All BS. And to the people who support this by actually buying a vehicle from a dealer your NUTS!!!

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  4. As long as a portion of consumers agree to pay thousands $$$ over MSRP, there will be “garbage” dealers that will take advantage of these fools. A Free Market Economy permits it. A Free Market Economy also permits consumers to choose their supplier of choice. IMHO, allow the vehicles of these “garbage” dealers to sit on their lots until the tires are dry-rotted and flat. It’s no sweat off of my sack. I purchase my GM performance vehicles from a top-notch dealership that NEVER charges over MSRP. To each their own.

    “I am currently selling gallons of skim milk for $18.75/each. Do I have any buyers?”. 🙁

    Reply
  5. We ended up getting an X5M because we have been looking for an Escalade for over a year and every single dealer anywhere near WA state within a days drive was 30k over MSRP.

    Reply
    1. And? Use the internet. Find an honest dealer. Buy a one-way airline ticket. Have them pick you up at the airport. Drive your new vehicle home. Save yourself $29.5K ($30K minus the cost of the one-way airline ticket and gasoline to drive home).

      Reply
  6. Simple, there is an ass for every seat, if you’re willing to pay, so be it !
    I’ve asked dealers if they would like catsup, bbq sauce, or ranch dressing
    to make the vehicle more enjoyable when they have to eat it !

    Reply
  7. Thank you again J Lo, journalism at it’s finest!

    Reply
  8. Dan B, that was a good one! Customers are nickel and diming the dealerships? Just look how lavish the owners of dealerships live, and they rub it in your face. They live like kings and queens so spare us all that lie! I read on here as a matter of fact that Ford Motor Co. are watching there dealers, and if they are selling vehicles over the MSRP, they will not be allowed to sell the EV when there in full production. I doubt GM Corp. has that policy, as there CEO is a female. With that said, I can’t wait until interest rates hit 10-15% on both automobiles and home loans. This will stop the out of control prices on both homes and vehicles. BTW Dan, I don’t appreciate paying 1,000.00 DOC fees from the dealerships.

    Reply
    1. So if the big problem is how dealership owners live lavishly, then you must never have used windows(Gates), never buy from Amazon(Bezos), and will never buy a Tesla(Musk). All three eclipse the life style of dealer owners. Bezos just bought a yacht that was so big the Netherlands had to move a bridge out of the way to get it thru for delivery.

      Reply
    2. jon M: I’m beginning to think that many are not actually reading (or maybe just not understanding?) what I wrote above. I’ll try to be brief in explanation.

      Customers nickle-N-dime stuff: Referring to the constant grinding on the prices even when the dealer is at the point of no profit for that sale. Then the customer asking for throw ins. This happens all the time under normal circumstances, but that’s not what’s happening now.

      Secondly, do you know how many dealers go belly up because the service department can’t keep the entire dealership afloat? It’s not an easy business to run and be successful. But when you and others point out the “lavish” life style of dealers, you are actually referring to a minority of them. And yes, those dealers are wealthy just like Jeff Bazos and so many more. But do you go on Amazon and grind them down? Do you “negotiate” with them?

      Lastly, I clearly stated above that I do NOT agree with these greedy mark-ups. I feel they are wrong and GM/Ford or whomever should never allow this to happen. My true point in my comment above is that the sun is shining and the dealers are now in a position to harvest the gold. They shouldn’t, but they are because they can and because customers (under normal times) just grind everything down to zero profits on new cars. So the best way for this to stop is for the customers to say no, walk out and not buy anything above MSRP.

      I’m not “for” the dealers. I work for one now and have been in this business for 20 years. Overall, dealers (owners/managers) are greedy and don’t take very good care of the sales department. So I’m for the customers. Just don’t be the D-bad customer under normal times and don’t be the stupid customer now willing to pay $20 to 30 grand over MSRP.

      Reply
  9. Mkavt, we are discussing dealerships selling vehicles over MSRP. We are not talking about windows or Amazon or Tesla. Try and stay in the game or don’t post! It’s that Simple! Geezzzz

    Reply
  10. Really is a bunch of whiners in here. So people are paying markups. So what. I paid a markup on a Yukon Denali and was totaled a month later. My insurance company actually put me in an equity position because in order to replace the vehicle I’d have to go to the pre-owned market. Used 22 Yukons are valued higher than new ones. It’s all relative. Vehicles values aren’t going to be dropping off of a cliff anytime this decade. There’s way too much pent up demand on the fleet side of things that would need to be fulfilled and there is also massive pent up demand on the retail side. New car lots are empty. I drove through our local Toyota, Subaru, and Honda dealers because they looked like they had some cars. I found two new cars at Toyota, zero at Subaru or Honda. All used cars.

    Reply
  11. Stock #C22161 Escalade 4WD Sport Platinum in Scottsdale, AZ. Total Vehicle Price $119,920 plus $35k dealer (Market Value Adjustment). With dealer installed accessories $ 157,378. And what about taxes and licensing? I remember when that was allot for a house!

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  12. And C22161 has sold after just 3 days on the lot. We actually had two SPORT PLATINUM at $35K over. Both Sold. Had a PREMIUM LUXURY come in Friday around 3pm. Satin Steel and Brandy – SOLD 6pm at $25k over. Now sold out for at least 2 weeks. Still running 85% – 90% pre sold orders at $10K over and 8 to 12 months to get. Supply is short and Demand is at all time high. Taxes and License figure about 11% more.

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    1. Those two Escalade sales at $35k & $25k over MSRP crates a trend and just adds fuel to inflation. Then there are those who blame our President for inflation and interest rate hikes.

      Reply
    2. There’s no excuse for stupid people paying over MSRP for any car I don’t give a crap who makes it!

      Reply
  13. With the over MSRP sales and prices of used cars inflated, have lease residuals increased?

    If residuals have increased and people are leasing, they may figure that they are only paying
    for half of the $30 over MSRP. If buying they figure trade in will return some $, at least until and
    if things get back to normal.

    I have a CT4-V lease. At lease end if I have to wait a year to get another car or pay over MSRP, I will
    be tempted to buy out the lease. Normally that isn’t a good deal, but in today’s situation that may be
    a better deal, with mileage low thanks to CV.

    Reply
    1. Art: You will need to look at two things when your current lease ends. First, what is the exact amount you would need to pay to buy the car at lease end. Second, before you buy it at that price, check with CarMax or online with Vroom/Carvana for a real value. Chances are the price you will have to pay will be much less than the market value now. If that is the case, then absolutely BUY the car!! If you like it, drive it out for a while till things settle down. If you don’t want to keep it, trade it in or sell it to the highest bidder and get a new car if you find what you want without a big price markup.

      Reply
  14. We’re not charging over MSRP at the dealer I work at but good luck getting one. Our waiting list for getting one is so long because of that, you’d be lucky to get a 2023 at this point.

    Reply
    1. Is your dealer a standalone or shared store? Just curious to know.

      Reply
  15. It’s supply and demand. Dealerships are use to having 30 escalades on the lot. 3k in rebates and 0% for 72 months. With the chip shortage there are 10 buyers for every 1 escalade. So what happens is that a dealership needs to pay their bills. If dealerships are use to getting 30 a month and with the chip shortage they are only getting 5 then they will sell them for whatever they can get. Escalade customers make 50k-500k a month. If you want one in today’s market your gonna pay. Range rovers have gone over msrp for decades yet lets pick on cadillac for doing it for 1.5 years on 80% less inventory.

    Reply
  16. Before the pre pandemic, when did customers start not paying at MSRP? Should the customers pay for a product that is mediocre at MSRP? I think the problem is if the automakers done a better job matching supply with demand and the automakers start building better products, the dealers would not allow for discounts and market incentives. I have seen sales take a 360 swerve and dealers were forced to add discounts. So is it better to not overbuild and match supply with demand or it is not possible to do so? Also the dealers have pros and cons of running a business in retail side that is not all roses and peaches whereas the customers has pros and cons also for purchasing. The customers are losing the battle right now paying at MSRP and above with limited choices if buying right now and if wanting a vehicle of his/her choice, they have to be on a long waiting list of the vehicle spec’d of their choosing. Unfortunately, not a comfortable place to be in at this moment for both the dealer and customers.

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  17. Dealers fees says it all! That line item is the profit or pays for interest, commission and a full tank of gas.

    Reply
  18. Where’s the integrity? GM shouldn’t allow their dealers to markup above MSRP!!

    Reply
  19. Haven’t you people ever noticed that there are NO new car dealerships without a used car lot, but there are thousands of used car lots not linked to a new car dealership? The “real” profit has ALWAYS been made on the used car, not the new one. It’s been this way ever since 1952 when the WW2 new car “drought” was finally over. Corporate GM hasn’t always played nice with the dealers, notably when they force them to spend millions to “upgrade” the appearance of their building(s) or install new signage just to meet some corporate image. I’d like to hear from any dealership new car manager or owner a breakdown of his annual profit percentages between, new car sales, used car sales, parts sales and service revenue.

    Reply
  20. So if production is down 40% because of chip shortages and supplier problems and the factory forces dealers to charge up to msrp then dealerships will close in every neighborhood. Then consumers will have to drive 40 miles to buy and service their cars. Who does that benefit? Supply issues are so bad don’t buy a new car unless your current car is done. Dealers have been struggling to keep their doors open because of the extreme shortages. My lot has been completely empty for over a year now. It’s horrible. If you own a McDonald’s franchise and there is a massive bun shortage and you only get 20 buns a day are you gonna charge 1.99 per burger or 10.99 per burger to pay the bills.

    Reply
  21. I was in the Market for a new GMC Denali 1 ton Diesel and 2 dealers in Kansas City tried that crap with me. I ended up buying out of state for less than MSRP but the least amount off I’ve ever paid for a Truck but Randy Reed and Albright will never get my business again. I had bought 3 trucks in the last 10 years from Reed and they tried to stick 10k as a “market Adjustment”.

    Reply
  22. It is all market driven. Anyone looking at preowned cars lately? Compared a one year old price to the MSRP of a new one? Gotten a value for your current vehicle and it has gone UP AND NOT DOWN from a year ago??? The automotive business is no different than the housing market right now. And they don’t take microchips to build. Used cars are driving the adjusted price on new cars.
    Too many used cars? Price is low on used, rebates are big on new. Not enough used cars? Price is high on used, new cars get the opposite of a rebate. It’s all a balance between the market and the MSRP which everyone seems to forget stands for Manufacturers SUGGESTED retail price. It’s a big deal because this isn’t the direction the swing has been in. But it will be like this for probably at least another year.

    Reply
  23. Dealers in Southwest Florida are taping consumers with a $40,000 market adjustment. Sunset Cadillac in Sarasota and Bradenton practically rub your noses in it. They lost my business forever. I was so mad. I write to the President of GM, Steve Carlisle, asking him to do something about this unethical practice. I also own a ton of GM stock. Stay tuned to see how this plays out.

    Reply
  24. Buy a Chevy Tahoe/Suburban or GMC Yukon. Same car — different grille.

    Reply

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