New Cadillac vehicles’ average transaction price (ATP) for May 2023 increased 1.2 percent year-over-year compared to the ATP for May 2022. ATP rose by 1.0 percent month-over-month from April 2023.
Cox Automotive and Kelley Blue Book reported the ATP levels as part of their new-vehicle sales analysis for May 2023, published on June 12th.
The data accompanying the analysis shows the ATP for a new Cadillac vehicle sold in May stood at $71,695, a 1.2 percent rise compared to the $70,824 recorded in May of calendar year 2022. Relative to the April 2023 ATP of $70,975, average new Cadillac prices are up 1.0 percent in May 2023.
ATP for new Cadillac vehicles climbed over the past several months compared to 2022, but fell sharply in February, dropping 7.3 percent relative to February 2022. More recently, year-over-year average transaction price gained 1.1 percent in March as the industry saw booming luxury sales and surpassed 2022 by 2.8 percent in April.
Two other GM brands, Chevy and GMC, recorded May 2023 ATP gains when compared to 2022. Chevy racked up a 2.1 percent average price increase, while GMC ATP soared 7.4 percent. Contrastingly, Buick prices dropped 2.5 percent to $37,535. Overall, GM’s $51,958 ATP in May was a 2.9 percent jump from May 2022, but fell 0.2 percent since April 2023.
The study also shows ATP for new vehicles in the automotive market as a whole is rising, with average prices surging 3 percent above May 2022’s average prices. Month-over-month increases for May 2023 were just 0.5 percent, but continued a positive trend.
After remaining stubbornly above MSRP for many months, ATP is now below suggested retail price. This change is “good news for consumers as manufacturers are seeing higher inventory and increased competition and need to push sales to keep inventory moving,” Cox Automotive research manager Rebecca Rydzewski remarked.
Average prices for non-luxury vehicles, a sector which includes Cadillac, rose 3.7 percent year-over-year in May 2023. Meanwhile, luxury vehicle inventories rose as supply continued to increase and luxury ATP showed mixed results. Non-luxury dealership inventory also increased, though to a lesser degree.
Part of the reason for ATP remaining below MSRP is increasing incentives from dealerships, KBB notes. Incentives reached 3.9 percent of new vehicle ATP in May, the highest level in the past 12 months.
Despite this, incentives are still only a fraction of the level they reached several years ago, with May 2019 registering average incentives that came to 9.9 percent of ATP and incentives still above 7 percent in 2021. Only luxury vehicle incentives are again approaching that figure at 7.7 percent.
Finally, in what may be an important future factor for Cadillac with its release of the all-electric Cadillac Lyriq, EV prices plunged 14 percent compared to last year, though EV sales overall rose 44 percent, a robust gain Cox executive analyst Michelle Krebs ascribed to “a combination of tax credits and manufacturer incentives that are encouraging sales.”