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Cadillac buyers are paying well above the MSRP for the purchase of a new vehicle in January 2022.
In fact, Cadillac topped the charts with the highest amount paid by a customer above the sticker price, according to a report from Edmunds. The average MSRP for a new Cadillac vehicle is $76,914, while the Average Transaction Price (ATP) is $80,962, with ATP representing a 29 percent increase compared to ATP in January 2021. On average, customers pay $4,048 more than the sticker price for a new one. Cadillacs.
In comparison, Land Rover shows the next largest difference between the MSRP and ATP averages, with the former being $87,457 and the latter at $90,022, for a difference of $2,289.
The price of the new Cadillac far exceeds the industry average MSRP of $44,989 and ATP of $45,717, with the difference between the two only $728. On average, shoppers paid more for the sticker price in 82.8 percent of vehicle purchases, up from 2.8 percent in January 2021 and 0.3 percent in January 2020.
The ongoing global shortage of microchips, among other supply and material constraints, has created a high demand and low supply scenario for the automotive industry, generating unusually high ATP levels. Customers are willing to pay above the MSRP to get a new vehicle – or are forced to do so because of transportation needs.
Cadillac’s parent company, General Motors, recently issued a warning to its dealership regarding the trend of selling vehicles above the sticker price. In a letter to dealers, GM reminded them that they are “obligated to sell products ethically and lawfully,” and that some dealers have engaged in activities that are detrimental to the customer experience. The letter threatens that the automaker will take action against dealers found to be engaging in “unethical sales practices” and that it reserves the right to re-allocate vehicles or take another route.
Edmunds suggest that the best course of action for potential new vehicle buyers is to “[wait] up to a year or so if they want to hold off until the market resembles something close to pre-pandemic normal.”
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