The average transaction price (ATP) for new Cadillac vehicles continued to be sharply lower year-over-year in January 2023, a trend also visible in December 2022, as shown by data from Kelley Blue Book and Cox Automotive. Customers paid less for new Cadillac vehicles relative to last year, shelling out an average of $69,407 that is 13.1 percent less year-over-year compared to January 2022’s $79,869 ATP.
The brand’s ATP is up slightly from December, showing a month-over-month gain of 0.3 percent. Average transaction price was $69,198 last month per the latest Kelley Blue Book report.
Turning to GM as a whole, aggregating the ATP data from all four of its U.S. brands (Buick, Cadillac, Chevy, and GMC) reveals a year-over-year 0.7 percent decline in The General’s new vehicle ATP from $52,218 a year ago to $51,842 in January 2023. From a monthly perspective, GM’s ATP fell 3.5 percent from December 2022’s $53,714.
Meanwhile, the overall automobile industry recorded a 5.9 percent increase in January 2023 new-vehicle ATPs compared to January 2022, registering an average price of $49,388 per vehicle versus last year’s $46,620 ATP. That ATP figure was down 0.6 percent when measured against the $49,698 average industry price in December 2022.
While luxury vehicle sales volume is up sharply, making up a record-setting 19.6 percent share of sales in January 2023, the ATP of luxury brands like Cadillac, Audi, BMW, and Lincoln fell. High interest rates and inflation are causing the non-luxury part of the market to struggle, leading carmakers to focus on producing higher-end vehicles.
The average transaction price of a new vehicle remains well above sticker price, a situation that has now existed for approximately 18 months. The gap between ATP and sticker price appears to be narrowing, however. ATP was $900 above average MSRP in January 2022, while in January 2023 it was only $310 higher than sticker price.
Incentives remain low at just 2.8 percent of ATP, nearly a third of the 8.6 percent of ATP registered two years ago. Low new vehicle inventories account for the low level of incentives. However, in the luxury sector, incentives have climbed back to 6.2 percent of ATP.
Sales volumes rose approximately 6 percent for the month compared to January 2022. More fleet sales of vehicles and the ramping up of new vehicle supply as constraints gradually ease are the factors driving more volume year-over-year according to KBB’s analysis. Volume fell slightly month-over-month, a decline likely caused both by high automotive loan interest rates and December’s record ATPs.