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The average transaction price (ATP) of new Cadillac vehicles in the United States was up 29 percent in January 2022 compared to January 2021. Cadillac ATP increased from $62,081 in January 2021 to $79,926 in January 2022, according to Kelly’s Blue Book.
This figure represents a small one percent increase above $79,182 in December 2021, and compared with $70,811 in November 2021 and $81,124 in October 2021.
The increase in Cadillac ATP comes after a decline in US sales during Q4 2021, with overall sales down nearly 50 percent. The decline was a result of substandard vehicle supply at dealer level, which was caused by a drop in production stemming from the ongoing shortage of microchips as well as shortages of spare parts and other materials. Circumstances have caused many automakers, including Cadillac, to cut or stop production of certain vehicles.
More specifically, Cadillac is prioritizing its limited supply of microchips towards the production of more profitable vehicles such as its flagship Escalade full-size SUV line. In fact, production of the Escalade remained uninterrupted despite difficult operating conditions, and as a result the vehicle dominated its competitive sales bracket in Q4 2021. Production of the remaining Cadillac models was discontinued in 2021, but is currently in full swing for the 2022 model year, so that’s a constraint. inventory is likely to continue to decrease over the next few months.
KBB noted that new vehicle prices have likely peaked, but that ATP as a whole will remain high for the first half of calendar year 2022, at least until production and supply meet demand.
Overall, the luxury vehicle ATP was $64,635 in January 2022, which is an $805 drop from December 2021. Nonetheless, luxury vehicle buyers spent an average of $1,300 on top of last month’s MSRP. In comparison, shoppers spent an average of $2,400 below the MSRP on luxury vehicles in January 2021.
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