The Average Transaction Price (ATP) of new Cadillac vehicles fell 6.4 percent in July 2022 compared to the same time last year.
According to recently report by Kelly Blue Book, the new Cadillac ATP is $70,603, down from $75,424 in July 2021. While this represents a 6.4 percent year-over-year decline, the figure is 0.6 percent higher compared to June 2022, where the Cadillac ATP was $70,205. This decline can be attributed to the increased supply of more affordable models made by luxury brands, such as the XT4 and XT5, compared to the previous year, along with increased availability of the cheaper Cadillac Escalade trim.
For reference, the ATP of the entire luxury vehicle industry is $65,530, which is $382 lower than the previous month. Meanwhile, ATP all vehicles was $48,182 during July 2022, up 11.9 percent from July 2021, but up just 0.3 percent during June 2022. KBB noted that the high ATP of new vehicles overall could be contributed in part to the increase in the share of luxury vehicles, which accounted for 17.8 percent of last month’s sales. As luxury vehicles trade at a higher rate than mass market non-luxury vehicles, a higher share of the former will lead to an increase in ATP for the industry as a whole.
In addition, the market is still in an “over sticker” pattern, meaning that buyers are paying more than the MSRP for new vehicles. Inventories continue to increase as supplier constraints continue to decrease.
“This is still a seller’s market,” said Rebecca Rydzewskieconomics and industry insight research manager at KBB. “New vehicle inventory levels are better than last year, but have historically remained low, and that keeps new vehicle prices high. Still, though average prices are at record levels, there are affordable vehicles out there. Compact cars and SUVs and subcompact models typically trade 30% to 40% below the industry average.”
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