Cadillac incentive spending fell almost 57 percent in Q3 2022 on a year-over-year basis, amid high demand and tight inventories.
According a Cox Automotive report (PDF), the average incentive offered on a Cadillac vehicle sold in the U.S. in Q3 2022 stood at $2,086 per vehicle, which was down from $4,845 per vehicle in Q3 2021. The average incentive spending across all four of GM brands in the third quarter of this year stood at $1,353 per vehicle.
Despite the trend of ever-diminishing incentives, Cadillac sales actually increased almost 50 percent from 22,519 units in Q3 2021 to 33,672 units in Q3 2022.
Sales Results - Q3 2022 - USA - Cadillac
|MODEL||Q3 2022 / Q3 2021||Q3 2022||Q3 2021||YTD 2022 / YTD 2021||YTD 2022||YTD 2021|
Sales of the Cadillac XT4 soared an astonishing 930 percent to 5,838 units in Q3 2022. In fact, all Cadillac models saw an increase in sales from Q3 2021, except the regular-wheelbase Cadillac Escalade, which saw sales fall a little over two percent to 6,111 units sold in Q3 2022.
Overall, total GM Q3 2022 sales in the United States – which include Chevrolet, Buick, GMC and Cadillac – increased almost 25 percent to 555,580 units. That’s still far behind GM Q3 2020 sales of 665,192 units. The semiconductor chip shortage had yet to fully take hold in Q3 2020, which is the main reason behind the large year-over-year decrease in sales volume between Q3 2020 and Q3 2021.
The average incentive spending for Chevy stood at $1,416 per vehicle in Q3 2022, down more than 48 percent from the same period last year. It was a similar scenario over at GMC and Buick, with incentive spending averaging $1,048 and $964 per vehicle, down 64 percent and 76 percent, respectively, from Q3 2021.
Incentive spending will likely continue at its currently low pace for the rest of the year as inventory remains tight as a result of ongoing supply chain disruptions and material shortages. However, incentives should begin to climb as production constraints ease and the inventory situation improves.