The average transaction price (ATP) for new Cadillac vehicles sold in February 2023 fell 7.3 percent year-over-year to $67,830. A year ago, in February 2022, Cadillac ATP was recorded at $73,184.
As per Kelley Blue Book and Cox Automotive research, Cadillac new vehicle ATP also fell 3.2 percent from the $70,095 the brand’s vehicles sold for in January 2023.
Cadillac’s year-over-year transaction prices have been seeing double-digit declines over the past few months. The brand’s ATP fell 13 percent in January 2023 and 12.5 percent in December 2022. The last time Cadillac average transaction price was stable compared to the previous year was in November 2022.
The ATP for GM as a whole in February 2023 remained stable compared to February 2022, rising 0.6 percent to $51,165. While the average transaction prices for Cadillac and Buick declined, the drops were offset by strongly rising ATP for GMC. Out of The General’s four brands, only the prices of new Chevy vehicles remained mostly unchanged.
ATP across the entire automotive industry grew 5.3 percent year-over-year in February 2023, while dropping 1.4 percent from January. Sales volumes climbed 9 percent month-over-month and 9 percent year-over-year.
GM’s Cadillac followed a general downward trend for ATP in the luxury vehicle sector. While average transaction prices for some luxury vehicle types grew – luxury full-size SUV and crossover prices gained 8.5 percent, for example – most categories remained stable or declined.
Luxury vehicles continued to hold a larger market share than they did prior to COVID-19 and its associated disruptions. Luxury vehicle sales represented 13.2 percent of the total in February 2018, far below the 19.5 percent of total sales they accounted for in February 2023.
While incentives offered by automakers are still at historic lows per Kelley Blue Book, sellers of luxury vehicles are offering much higher incentives to buyers than those selling non-luxury vehicles. Incentives on luxury cars amounted to 6.5 percent of ATP during February, compared to 3 percent of ATP for the whole auto industry.
ATPs continue to exceed sticker price or MSRP for new vehicles, as they have been for over 12 months. However, buyers are currently only paying a tenth of the premium above MSRP on average compared to year-ago figures. In February 2022, new vehicle ATP was close to $1,000 above sticker price. Now, in February 2023, ATP is only $95 above MSRP, though the gap is larger for luxury vehicles.