New Cadillac vehicles are selling for a higher price than they did a year ago, with an average transaction price or ATP up 4.2 percent year-over-year to $73,216 in November 2023, the latest automotive market data reveals.
Research by Cox Automotive and Kelley Blue Book (KBB) also shows that Cadillac’s ATP is down 2 percent from its October 2023 peak of $74,724, a month during which it gained 7 percent compared to 2022.
The growth in Cadillac ATPs is all the more remarkable because the luxury sector where the brand operates saw a 7.5 percent downward plunge in average new-vehicle prices between November 2022 and November 2023. This ATP decline comes at the same time luxury vehicles achieved their highest-ever U.S. market share, above 20 percent.
Cadillac prices were also roughly $10,000 higher than the luxury vehicle industry average of $63,235, possibly driven by the ongoing popularity of its high-priced Cadillac Escalade SUV. Full-size utility vehicles such as the Escalade saw their ATPs rise 4.5 percent year-over-year in November, while their incentives were among the lowest, at under 3 percent.
Average MSRPs continued to increase across the board as it has every quarter for at least the past decade, according to Cox and KBB. The fall in industry ATP is attributable to rising incentives, not falling base prices, with research manager Rebecca Rydzewski of Cox noting “dealers are seeing profits contract as inventory levels return to normal, and incentives are turned up to help stimulate sales” so that “consumers may feel some relief in vehicle prices.”
Incentives boomed 136 percent compared to last year, with luxury vehicles and EVs offering some of the highest at around 8 percent. However, incentives remain below the levels they were at before the COVID-19 pandemic. Four years ago, in November 2019, the new-vehicle ATP for non-luxury models stood at 10.5 percent.
ATPs in the EV sector, which Cadillac has already entered with the Cadillac Lyriq as part of its plan for its lineup to go all-electric by 2030, fell 21.1 percent year-over-year to $52,345. EV incentives are up to 8.9 percent in November.
Cox director Stephanie Valdez-Streaty observed that “newer products and higher discounts have brought down average EV prices, even before potential tax incentives.”
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