According to the latest research by Cox Automotive and Kelley Blue Book, Cadillac buyers paid an average transaction price (ATP) of $71,008 for a new Caddy, up 0.4 percent from July, but down 3.9 percent from the year-ago prices paid in August 2023.
Cadillac prices are largely in tune with falling new vehicle ATP across the U.S. auto market, Cox says, while incentives are half again as high as they were back in late summer 2023, when Caddy ATP rose 5 percent.
Dealers are seeing their profits fall as inventory climbs strongly and demand for vehicles wavers in the current economy and with pre-election uncertainty in the air. Inventories are up about 40 percent year-over-year, giving buyers a bigger choice and less reason to buy more expensive alternatives. The downward pressure on Cadillac prices is likely part of these larger trends.
Luxury cars, such as those produced by Cadillac, had some of the highest incentives during August as dealers tried to shift these more expensive models off the lot. Incentives for these premium vehicles surged to 10 percent of ATP, even higher than the ballooning incentives for compact SUVs or crossovers at 9.2 percent.
New Cadillac vehicles are becoming a better deal for buyers looking to save compared to previous prices. Erin Keating, an executive analyst at Cox, pointed out that “in the face of a sluggish sales pace -15.1 million in August – more dealers are pulling the only lever they have: higher incentives.” She also said the current “shift to a buyers’ market is good news for consumers.”
Electric vehicles like the Cadillac Lyriq are also seeing falling ATP, but at a much slower rate than last year. Last August, EV prices fell by 13 percent year-over-year, while in August 2024, prices were down just 1.2 percent. Incentives on electric vehicles, however, are currently up to a whopping 13.3 percent of ATP.
The news follows largely flat Cadillac sales in Q2 2024, when most models saw low double-digit sales declines and only the upsurge in Cadillac Lyriq sales counteracted the downward slump.
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Did our part. Bought a new 2024 XT4. $1500 of sticker after $500 from dealer & $1000 rebate. Not the best deal but equipped exactly as we wanted. Had to wait 2 months as it was “In Transit” for that long trip from the KC plant to Memphis dealer. What a joke!