Average transaction price or ATP for new Cadillac vehicles shot up by double digit amounts year-over-year in December 2024, soaring 12.8 percent above December 2023 levels by hitting $79,594.
Cadillac ATP rose even more sharply month-over-month, registering a 17.2-percent blastoff compared to November 2024, according to the report by Kelley Blue Book and Cox Automotive.
The skyrocketing average transaction price for GM’s luxury brand is probably explained by sales of the refreshed and updated 2025 Cadillac Escalade, With the most affordable Cadillac Escalade trim coming in at a starting MSRP of $89,590 and the priciest of the non-V-series SUVs starting at $124,890, the model contributes significantly to ATP.
The arrival of the all-electric Cadillac Escalade IQ, which starts at $129,990 including destination freight charge, probably also contributed to mushrooming ATP. Meanwhile, the most affordable models in Caddy’s lineup saw sales dip, meaning less cheaper vehicles are contributing the average. In Q4, Cadillac CT4 sales crashed 34 percent and Cadillac XT4 sales slipped 1.3 percent downward.
Cadillac ATP also rose, though by a more modest 4 percent, in December 2023. More recently, the average transaction fell by 6 percent in November 2024. The year-end surge corresponds closely to observations by Cox and the auto industry in general. The analysis firm noted that “high-priced models from luxury makers often sell well in the final month of the year” and a 1.3-percent market-wide ATP increase echoed this.
In addition to the usual year-end growth in luxury model sales, other factors appear to be in play during December 2024. Executive analyst Erin Keating said that “just after the election, consumer sentiment and confidence have been on the rise.” She observed that “when consumers are optimistic, they go shopping” as well as pointing out better financing terms and more incentives on offer.
Furthermore, vehicles priced at $80,000 or higher took the biggest chunk of the market since Cox has been measuring it, accounting for 5.6 percent of December automotive sales. Keating summed up by saying “it was a December to remember, in terms of both sales volumes and prices.”
Comment
Does anyone know if the Cadillac Optiq will be hit with the new tariff, since it’s produced in Mexico? Didn’t know if GM products would fall under that umbrella.