The average transaction price of a new Cadillac vehicle rose 4.7 percent year-over-year in May, according to Kelley Blue Book.
A new Cadillac vehicle retailed for an average of $71,479 last month, up 4.7 percent year-over-year from $68,284. Cadillac ATPs also rose by 3.1 percent from $69,304 in April of this year.
Industry-wide ATPs for both mass-market and luxury brands in May 2022 stood at $47,148, up 13.5 percent ($5,613) from May 2021. Rising ATPs are in part being driven by high demand for luxury vehicles, which now account for 17.3 percent market share. Luxury share in May 2021 was 15.9 percent, according to KBB. Pre-pandemic luxury market share stood at 13.1 percent in May 2019.
Cadillac’s ATPs were higher than the average luxury market transaction price of $65,379 in May of this year. This is a good sign for the American luxury brand, signaling customers are happy to pay above the luxury market average to put one of its vehicles in their driveway.
Just as in previous months, it’s likely that rising Cadillac ATPs are being driven mainly by sustained high demand for the Cadillac Escalade and Escalade ESV, which often sell for near or around $100,000. Other pricy Cadillac products that are likely helping to drive these rising ATPs include the Cadillac CT5-V and CT5-V Blackwing sport sedans, as well as the Cadillac XT5 and XT6 crossovers. Future products like the 2023 Cadillac Escalade-V, which is priced from $149,990, will also contribute to higher ATPs.
Analysts for KBB’s sister brand Cox Automotive believe vehicle prices will remain high for the foreseeable future – although demand is beginning to taper off.
“Prices for both new and used vehicles are showing signs of stabilizing, and price growth will likely decline over the course of the summer as the anniversary of the ‘big squeeze’ in inventory passes,” explained Rebecca Rydzewski, research manager of economic and industry insights for KBB’s sister brand Cox Automotive. “However, no one should expect price drops, as tight supplies in the new market will hold prices at an elevated level into 2023.”
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