While prices and sales are calming down after the usual December surge across most of the U.S. auto market, Cadillac average transaction price or ATP rose in January at a blistering 19 percent year-over-year, soaring from $71,340 in January 2025 to $84,913 last month.
According to the January 2025 ATP report from Kelley Blue Book and Cox Automotive, Cadillac ATP is also up a whopping 6.7 percent even compared to the strong luxury vehicle sales of December.
These average transaction price increases are themselves building on top of rising ATP. In December 2024, Cadillac vehicle ATP surged 12.8 percent year-over-year, while in January 2024 – now so notably outdone by January 2025 – the luxury brand’s average transaction price jumped by 5.5 percent relative to the month in 2023 as well.
Why Cadillac ATP is booming while the auto market as a whole is seeing a mild cooldown in prices and sales is not immediately clear from the Cox and KBB data. One possibility is sales of the Cadillac Celestiq, which launched as a 2025 model and starts at approximately $340,000. The brand doesn’t publish Celestiq sales numbers.
However, another possible source for the surge is found in sales of other newly introduced models. Cadillac Escalade IQ sales have begun, with the starting price of $129,990 potentially adding considerably to the ATP. Notably, combined ICE and EV Escalade sales were up 34 percent in Q4 2024 and Cadillac Lyriq sales were up 111 percent, so that momentum probably continued through January.
By contrast, the auto market as a whole in America is taking “a seasonal breather” following “a surprisingly hot December,” according to Erin Keating, a leading Cox analyst. ATP for the industry is down 2.2 percent compared to December 2024, though it is up 1.3 percent from January 2024.
Sales of luxury brands such as Audi, BMW, and Lexus declined after their typical Christmas-season surge, helping to bring down ATP overall. Incentives also declined somewhat, dropping to 7.2 percent from 8 percent, though remaining higher than the year-ago 5.6 percent.
Comments
Has anyone actually seen a Celestiq in the wild without a manufacturer plate?
They are not on sale yet.
Maybe GM is just anticipating the large cost increases from Carrothead’s tariffs!
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“Why Cadillac ATP is booming while the auto market as a whole is seeing a mild cooldown in prices and sales is not immediately clear from the Cox and KBB data.”
The Escalade IQ went on sale late December and has a starting MSRP of about $128k. Not to mention the facelift of the gas Escalade and Escalade-V. This is not rocket surgery.
It is super simple why it is up, they are selling their IQ vehicles at pretty much the same prices that the Big Three Germans sell their cars in each segment. And the Optiq just started to be sold and the Vistiq is not even out yet.
No more basement bargain pricing for Cadillac.
Cadillac has a bright future ahead and I cannot wait to see their entire lineup once it is all said and done!!!
But everyone keep complaining about “IQ” vehicles Lol
Yeah, we’re in for a wild year with Cadillac. We have the first full quarter of Escalade IQ deliveries in Q1, followed by the first full quarter of Optiq deliveries in Q2. The Vistiq and Lyriq-V will probably start shipping in Q2, so first full quarter in Q3.
No firm dates on the Escalade IQL or Optiq-V, but with both being spotted in public road testing it seems like those will make an end of year debut. Maybe in time for the typical Q4 spike in luxury sales.
I would be very surprised if Cadillac isn’t a majority EV seller by the end of the year.