New vehicle prices remain high, and Cadillac is no exception – in fact, the average transaction price (ATP) of a new Caddy saw a 5.7 percent year-over-year uptick during July 2023.
Per a recent report by Cox Automotive, the ATP of a new Cadillac was $74,343 last month, up from $70,332 recorded in July 2022. On a month-over-month basis, the ATP in July 2023 represented a 1.1 percent decrease from June 2023, during which customers spent $75,192 on average for a brand new Cadillac.
While Cadillac’s ATP grew, the overall ATP of a new luxury vehicle decreased last month, down almost three percent year-over-year. On average, luxury vehicle buyers paid $63,522 in July, down just $192 from June. The sale of luxury automobiles still made up a not-insignificant 19.3 percent share of all new vehicle purchases last month – the highest it’s been so far in 2023.
By comparison, industrywide ATP was $48,334 last month, down 0.7 percent from June, while remaining steady year-over-year, down $199 from July 2022. Since January, new vehicle prices are down 2.7 percent, representing the largest first-half decline in over 10 years. Across the board, things are looking up as supply chain issues stabilize, allowing automakers to increase inventory at the dealer level.
Additionally, incentive spending is back on the upswing. Incentives averaged $2,148 in July 2023, representing 4.4 percent of vehicle ATPs. For the sake of comparison, incentives accounted for 5.9 percent of ATP during July 2021, and 10.3 percent in July 2019.
“New-vehicle price inflation has all but disappeared in 2023,” said Rebecca Rydzewski, research manager at Cox Automotive. “New-vehicle prices, primarily driven by cuts in luxury and electric vehicles, are decreasing as inventory is steadily improving. With higher inventories and higher incentives helping to keep downward pressure on prices, there certainly are good reasons for shoppers to be heading back into the market.”
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