The average transaction price (ATP) of new Cadillac vehicles sold in the United States rose 25 percent year-over-year, from $63,366 in December 2020 to $79,182 in December 2021, according to Kelley Blue Book.
The increase in Cadillac ATP comes in the wake of decreased sales in the U.S. in Q4 2021, with overall sales down nearly 50 percent. The drop is the result of subpar vehicle supply at the dealer level, caused by decreased production stemming from the ongoing microchip shortage as well as shortages of other parts and materials. The circumstance has led many automakers, including Cadillac, to trim or idle the production of certain vehicles.
Specifically, Cadillac has been prioritizing chips for high-margin products over lower-margin models. For instance, production of the Escalade full-size SUV – Cadillac’s flagship vehicle – has remained uninterrupted. By comparison, production of all other Cadillac models – including the CT4 and CT5 sedans as well as the XT4, XT5 and XT6 crossovers – has been idled during parts of the 2021 calendar year.
With strained supply and healthy demand, it certainly seems that unusually high ATPs are here to stay for the foreseeable future, with analysts predicting new vehicle inventory will remain tight until mid-2022.
Another key factor contributing to rising Average Transaction Prices is the ongoing growth in demand for more expensive automobiles, including luxury vehicles as well as larger pickups, SUVs, and crossover utility vehicles. Cadillac has been on the receiving end of this turn of events, as U.S. Escalade sales soared 65 percent to 40,505 units during the 2021 calendar year.
Sales Results - Q4 2021 - USA - Cadillac
|MODEL||Q4 2021 / Q4 2020||Q4 2021||Q4 2020||YTD 2021 / YTD 2020||YTD 2021||YTD 2020|
Overall, the average transaction price for new vehicles of any make was 13.9 percent higher in December 2021 compared to December 2020. ATPs were also 1.7 percent higher in December 2021 compared to November 2021.
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