Cadillac new vehicle prices grew year-over-year in September 2023, with the average transaction price (ATP) rising 5 percent to $74,070 from the September 2022 ATP of $70,575, recent market research shows.
The rise in Cadillac new-vehicle ATP contributed to an overall 1 percent gain in GM average prices for the month, despite a decline for some other brands. Collectively, Chevy, Buick, Cadillac, and GMC beat both last year’s $52,226 average September price and rose 1.2 percent from the $52,137 registered in August 2023 to $52,736 this month.
Meanwhile, ATP for new vehicles decreased across the U.S. automotive sector as a combination of increasing supply and steadily hiked incentives cut average prices by 3.4 percent since the start of 2023. Year-over-year, the ATP fell 0.7 percent, while month-over-month price edged downward 0.5 percent to $47,899.
Cadillac’s gains ran contrary to price trends in the luxury sector where it operates. Luxury vehicles overall sold for 6.2 percent less than in September 2022, the biggest single-year ATP decrease for the luxury sector during the past 10 years. Sales volume for luxury models remains significant, accounting for 18.5 percent of total September vehicle sales.
Price cuts and shrinking market share for EV automaker Tesla helped to shape September 2023 results. Tesla’s luxury model prices are down significantly as it slashed MSRP to encourage sales, while market share for Elon Musk’s company dropped to 50 percent as competitor sales expanded strongly. The ATP for Tesla decreased 24.7 percent compared to the same month a year ago.
While Tesla’s price cutting strategy helped to reduce luxury sector ATP overall, Cadillac wasn’t the only luxury brand to register strong average price increases. Audi and Porsche saw their ATPs grow by 8 percent and Mercedes vehicles were 10 percent more expensive than last year. Lexus, BMW, Land Rover, and Infiniti all commanded higher prices.
Meanwhile, declining ATP marked sales of Jaguar, Volvo, and Buick vehicles. Incentives account for a major part of luxury sector average price reductions. While overall auto incentives reached 5.7 percent of the ATP in September 2023 versus 1.7 percent in September 2022, luxury vehicle incentives climbed to 10.6 percent.
So far, the UAW strikes haven’t affected costs, with Cox research manager Rebecca Rydzewski remarking that “assuming the UAW strike is short-lived, current inventory levels are healthy enough to prevent any significant impact on consumer prices.”