The average transaction price (ATP) of new Cadillac vehicles fell 12.5 percent year-over-year in December 2022.
Last month, customers paid an average of $69,227 for a new Caddy, compared to $79,129 in December 2021, according to a report from Kelley’s Blue Book. The ATP in December 2022 also saw a small drop of one percent month-over-month, down from the $70,203 recorded in November 2022.
The luxury vehicle ATP in December 2022 was $66,600, down $216 from November. The luxury vehicle share accounted for 18.6 percent of industry-wide sales, up from 18.2 percent in November. For comparison, in December 2018, sales of luxury vehicles controlled 16.5 percent of the market.
A higher share of luxury vehicle sales, in turn, pushed up the industry-wide price of new vehicles to $49,507, up 1.9 percent, or $927, from November, and up 4.9 percent, or $2,297, year-over-year. In addition, incentive spending is slowly increasing again, representing 2.7 percent of ATP in December 2022, up from only 2.2 percent reported in November. However, a year ago, incentives averaged 3.8 percent of ATP across the industry. In comparison, incentives averaged 10.9 percent in December 2019.
“The transaction data from December clearly shows overall prices are showing no sign of dropping as we head into the year-end,” said Rebecca Rydzewskiresearch manager for economic and industrial insights KBBparent, Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices increased. Truck sales were very strong last month, and with many trucks selling for more than $60,000a new record was inevitable.”
Overall, new vehicle buyers are paying well above the MSRP, and have been for nearly 18 months. This may change, however, as KBB estimates that industry sales volumes increased by 5 percent in December 2022, up from last year but down from November 2022. Higher vehicle prices, rising loan interest rates and increased vehicle supply are likely to be the reasons for the December 2022 sales volume decline.
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