The typical Cadillac vehicle leaving the dealership in October 2024 cost the new owner $69,578 – a 6.6-percent drop in average transaction price, or ATP, compared to last October.
No longer fetching $74,482 ATP as it did a year ago, the GM luxury brand also saw prices slump month-over-month, losing 2.6 percent on average next to the $71,433 sale ordinarily seen in September, the data from Kelley Blue Book and Cox Automotive shows.
While its ATP is down strongly year-over-year, Cadillac is offering some of the meagerest incentives in the U.S. passenger vehicle market. Only Land Rover, Porsche and Toyota had incentives as low as The General’s premium brand, while at the opposite end of the scale, eight automakers are now offering average incentives in the low double digits, at more than 10 percent.
Looking for reasons why Cadillac’s ATP is shrinking strongly despite the absence of large incentives for the brand’s models, sales are down almost 2 percent recently. Meanwhile, dealer inventory for the brand stood at a whopping 110 days supply in October 2024, almost double the 60 days supply considered optimal in the market by most companies and auto dealers.
Considered as a whole, the ATP for General Motors is $52,119, down 3.9 percent year-over-year. Meanwhile, even as new vehicle inventory in America rises above 3 million units for the first time in 2024, October ATP for the auto market rose 1.7 percent compared to October 2023. Incentives averaged 7.7 percent across the industry.
ATP for the EV segment of the market, which Cadillac is increasingly relying on with its growing stable of electric nameplates, is creeping upward year-over-year, rising about 0.9 percent since 2023. Furthermore, EVs are still 14 percent more expensive on average than their ICE competitors, though the gap is gradually narrowing.
Most auto brands other than Cadillac and the other handful of premium marques with low incentives are using increased incentive offers in a battle for year-end sales. Erin Keating, a leading Cox analyst, remarked that “with competition intensifying, these strategies will be crucial in maintaining market share and driving end-of-year sales.”
Comments
“Meanwhile, dealer inventory for the brand stood at a whopping 110 days supply in October 2024…”.
This month it’s 117 days but of course that number constantly changes.
Things could be worse. Over in Dearborn, those folks are staring down a 186 days supply of Lincoln’s.
Bring us the new XT5 that you only sell in China. Make it in Tennessee we want it and we will buy it. Stop your EV madness, and listen to your dedicated Cadillac buyers
You mean senior citizen Cadillac buyers who, over the next decade, will maybe purchase one more additional vehicle.
Cadillac must reinvent or die with Boomers. I love CT 4, 5 and 6 but most of my generation does not.
GM would have been smart to use Caddy to chase Tesla with a slightly lower price point. Tesla, like Musk, is now political, which farms sales
Regardless of high inventories, this won’t stop Mary Buick Envision Made in China-Barra from continuing to raise prices. Have they sold any of the $340,000+ super-ugly Hearse Mobile?
How about the new CT6 made in Detroit and only sold in China ! SELL IT HERE
Stop all your EV’s
At this point you know you did a mistake…