Bucking the overall market trend that shows new car prices dropping sharply, the average transaction price or ATP for Cadillac brand vehicles in January 2024 increased 5.5 percent year-over-year to $71,699, up from the January 2023 average of $67,958 according to data from Kelley Blue Book and Cox Automotive.
The joint KBB and Cox study shows average prices for new Cadillac vehicles crept upward slightly month-over-month, too, rising 0.3 percent from a $71,474 ATP in December 2023.
The rising price of Cadillac vehicles follows similar increases in December, when the brand’s ATP surged 4.3 percent year-over-year. The trend reaches further back to November when average Caddy prices rose 4.2 percent compared to the previous year and October 2023 when the luxury brand posted 6.9 percent gains. The brand’s ATP is still below October’s peak by roughly $3,000.
The rising trend of Cadillac prices in January 2024 is a sharp reversal of the situation in January 2023, when ATP plunged 13.1 percent year-over-year. Meanwhile, GM’s average transaction price as a whole is down 1.9 percent relative to January 2023, and sank 3.4 percent month-over-month.
The analysis shows a downward price trend in the automotive market overall, with a 3.5 percent ATP drop for passenger vehicles compared to January 2023. This trend failed to result in more sales, with a volume of 15 million new vehicles sold compared to 15.1 million during the first month of last year and 16.1 million leaving showrooms in December.
A Cox executive analyst, Erin Keating, weighed in on the situation by remarking “the year-over-year new-vehicle ATP decline […] is notable.” Keating added that “prices have been trending downward for roughly six months now as automakers are sweetening deals to keep the sales flowing,” a situation Cadillac has thus far been immune to.
Cadillac’s rising ATP is even more remarkable when highlighted by the situation in the luxury sector. Average new luxury car prices plunged 9.7 percent in January, and compact luxury SUVs got cheaper by 11.9 percent year-over-year. Mass market vehicles saw lesser declines and smaller incentives than the average luxury brand.
Prices for EVs, a market sector Cadillac is in the process of switching over to with its Cadillac Lyriq and other upcoming models, fell 10.8 percent compared to last year, though much of this decline is driven by Tesla price cuts.
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Comment
I wish my FIXED income rose like new car and truck prices. Might be interested in but interest rates are out of site as well. I hope they sell as many as they can. Offering a $1400.00 a month payment over 3 years is not attrictive to me. Now they offer a 7.3 % over 84 months. thats a lot of interest money for GM. lower payments but will the vehicle hold up for 84 months ???