Home » Cadillac Average Transaction Prices Up 25 Percent In December 2021

Cadillac Average Transaction Prices Up 25 Percent In December 2021

Cadillac Average Transaction Prices Up 25 Percent In December 2021

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 December figure compares to $70,811 in November 2021 and $81,124 in October 2021.

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

MODELQ4 2021 / Q4 2020Q4 2021Q4 2020YTD 2021 / YTD 2020 YTD 2021YTD 2020
CT4-48.70% 1,3962,721+48.35%7,253 4,889
CT5-64.75% 1,8105,135-35.79%9,446 14,711
ESCALADE+2.22% 9,6649,454+65.01%40,505 24,547
XT4-56.41% 3,0466,988-48.48%11,579 22,473
XT5-67.78% 3,52810,950-19.43%28,380 35,223
XT6-58.91% 2,9407,155-8.61%20,662 22,609
CADILLAC TOTAL-47.83% 22,38542,909-8.64%118,310 129,495

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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Written by
Alexandra is a Colorado-based journalist with a passion for all things involving horsepower, whether it be automotive or equestrian.

2 Comments

  1. I wonder how much of the sales decline can be attributed to a shrinking pool of potential buyers. Cadillacs are luxury vehicles meaning that they are out of the price range of many. With labor shortages, shipping delays affecting the market, increased oil prices, and consequences from Covid the already small pool of buyers may be shrinking. Could a general lowering of costs counteract the decreased sales buy accommodating those who got out of the pool because the water was too deep?

    Reply
  2. Supply Down + Demand Up = Prices up. It’s economics.. Now wondering if we will see an uptick in MSRP ask price for the coming 2023 model years.

    Reply

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