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Cars in general have become more expensive over the past year, and that goes for Cadillac. The luxury marque saw its Average Transaction Price (ATP) increase 2.5 percent year-on-year in June 2022.
Recently report by Kelly Blue Book states that the new Cadillac ATP in June 2022 was $70,734, up 2.5 percent from $69,022 in June 2021. However, this is a small 0.9 percent decrease from the ATP in May 2022, which was $71,403.
For reference, the ATP luxury vehicle average last month was $66,476, up $1,097 month-on-month. KBB notes that this is the highest luxury vehicle ATP average ever recorded. In addition, the share of luxury vehicles continues to increase, as sales of high-end models account for 18 percent of total vehicle sales, up from 17.3 percent in May 2022, further propelling ATP sky-high.
By comparison, the industry-wide ATP was $48,043 in June, setting a record for transaction prices in the industry. Previously, December 2021 held this title, when the ATP for a new vehicle was $47,202. June prices were up $895, or 1.9 percent, from May 2022 and $5,410, or 12.7 percent, during June 2021.
Meanwhile, incentive spending – how much automakers spend on discounts and incentives – fell to another record low, accounting for just 2.3 percent of the industry-wide ATP. This is a clear reflection of the ongoing low-demand and high-demand scenarios across the industry, as automakers and dealers see no reason to offer incentives on new vehicles when customers are likely to pay the asking price, or even exceed the asking price.
One example is the Cadillac Escalade. The luxury brand hasn’t offered any discounts or incentives on the purchase or lease of its wildly popular (and profitable) full-size SUV for over a year now, a trend that seems to have become the new norm.
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