While incentives and discounts for luxury vehicles can be hard to come by, that was not the case at Cadillac in the first quarter of this year. The American luxury brand had the highest amount of available incentives among GM’s four brands in Q1 2022, with discounts on its vehicles averaging a rather significant $3,870. This represents a 31.7 percent decrease from Q1 last year, when the semiconductor chip shortage had yet to fully take hold and most automakers had an abundance of new inventory sitting on dealer lots.
While Cadillac had higher average incentives on offer in Q1, the luxury brand’s vehicles sometimes sell for much more than a Chevy, GMC or Buick product, so these discounts may not go as far. Cadillac sales dipped 24 percent to 28,216 units in the first quarter of the year as sales of every model it sells, except the full-size Cadillac Escalade SUV, slipped by double-digit numbers. According to Cox Automotive, this put Cadillac’s Q1 market share at about 0.9 percent, which is the exact same level it’s been hovering at for the past five years.
Incentive spending at GMC was down nearly 55 percent in Q1, while Chevy incentives fell even further by 62.8 percent. Sales incentives at Buick were similarly hard to come by at 61.8 percent. Low inventory levels and high demand leave little reason for automakers to offer steep incentives at the moment, as many dealers are easily selling out their available stock without having to entice customers with discounts. However, it seems as though slow sales of most Cadillac models, apart from the hot-selling Escalade, have kept incentive spending up at Cadillac even amid these market conditions.
GM recently launched its Cadillac Financial captive finance arm, which offers unique financing products to buyers and lessees of new Cadillac products, along with deals like 0 percent APR financing on certain models and trim levels for well-qualified buyers.