The Cadillac Escalade is easily the most highly sought-after vehicle currently offered by the luxury marque. As such, many dealers have been taking advantage of the full-size luxury SUV’s popularity as of late, often charging exorbitant markups. Despite warnings against this practice by Cadillac corporate, dealers continue to ask well over MSRP for the Escalade.
In early 2022, Cadillac’s parent company, General Motors, issued a warning to its dealer network. A letter signed by GM North America President Steve Carlisle reminded dealers that they are “obligated to ethically and lawfully sell [Cadillac] products” and that charging over MSRP constitutes an “unethical sales practice” that could damage the reputation of Cadillac and GM. It’s worth noting that prior to being promoted to lead GM North America, Carlisle served as Global President of Cadillac.
While there is no surefire way to enforce restrictions on dealer markups, since dealers are technically independent businesses that are free to set their own prices, Carlisle did mention that GM can redirect vehicle allocations away from dealers who are engaging in the practice.
This threat appears to have fallen on deaf ears. A reader recently reached out to Cadillac Socieity, stating that they were recently interested in purchasing a Cadillac Escalade Sport, but found that quite a few dealers had tacked an extra $15,000 to $30,000 onto full-size luxury SUV’s MSRP. Understandably, the reader balked at these prices, and instead opted to purchase a vehicle made by a competing automaker, and didn’t pay a cent over MSRP.
A quick search confirms our reader’s experience. A Florida-based dealer is asking $149,690 for a 2023 Cadillac Escalade ESV Premium Luxury Platinum, representing a $30,000 markup. Another dealer in Arizona wants $149,934 for an Escalade Sport Platinum, or $27,000 over MSRP. Yet another dealer in Michigan lists a 2023 Escalade Sport Platinum for $144,900, although this vehicle’s $21,000 markup is touted as being a “GM Employee Discount.”
Given that demand for the Escalade remains red hot, these markups are not likely to disappear any time soon, unless Cadillac takes further measures to curb the practice.
As a reminder, the 2023 Cadillac Escalade rides on the luxury marque’s T1 platform and is assembled at the Arlington plant in Texas. It is offered with a choice of three engines. The first is the naturally-aspirated gasoline V8 (production code L87), good for 420 horsepower and 460 foot-pounds of torque. The second is the optional turbodiesel six-cylinder engine (production code LM2), capable of 277 horsepower and 460 pound-feet of torque. The third, found exclusively in the Escalade-V, is the supercharged V8 gasoline engine (production code LT4) rated by Cadillac at a very healthy 682 horsepower and 653 pound-feet of torque.
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David Enson
We need ACCURATE info about new EV production, sales, and deliveries. The Lyriq rollout was embarrassing.
W.S.
Crooks.
Lynne Burgeson
We were fortunate to have a good dealer. We paid MSRP for our Escalade Luxury Premium Platinum John Elway Lone Tree Colorado
Kyle Caddy Johansen
You are VERY lucky. We are a regular customer with our Cadillac dealer and already purchased a 2021 Escalade at $26,000. above MSRP. We recently called asking if we buy a 2023 V – and trade in the 21’ (which they will then price $15,000 above MSRP – if they will still charge us the $50,000.00 extra (confirmed mark up on the V series,) ~ & the salesperson responded back YES – no exceptions. The 21’ caddy was the 5th new caddy we’ve bought there. We hoped to buy the 6th even after being screwed out of an extra 25K last time. I was thinking instead of $50,000 ~ under the circumstances maybe they would only add 10k or 20k — Nope. Sadly, – we will NOT be purchasing our 6th car from this dealership regardless of if – in a few years the madness stops and we can now pay MSRP again… PS – Cadillac is far from the only brand dealers are doing this with…. 2023 Range Rovers are $35,000 over sticker and rare / HTF Mercedes models – you don’t even want to know!!
Alan K
I never bought a Cadillac in my life until 2015. Then because I’d heard that quality was greatly improved, and I needed a very long wheelbase vehicle, for the first time I purchased an Escalade ESV. Over the next 8 years I purchased 5 more new Cadillacs, 2 Escalades, 1 CT6 with the Blackwing engine, and 2 XT6’s for my two daughters. They are excellent cars, great quality, and a good value when compared to the foreign models. I was proud that Cadillac, a car manufactured in the US, had achieved success once again, and I was definitely into the Brand. That has all changed with the $20,000 Escalade gouge over MSRP. This “premium” is simply outrageous, and is an insult to the loyal Cadillac buyer. I currently wish to update and buy 2 more Escalades. I thought that if I ordered them and thus would wait 3, 4, or 5 months, I could avoid the gouge, but no. The 20 G’s are on all of them, whether in stock at the dealer, or ordered for later delivery. Cadillac dealers need to be on notice, greed of this magnitude is remembered for a long time. I am not ordering the 2 new Escalades, and this weekend my wife and I are going to the Land Rover dealer.
Kyle Caddy Johansen
Hi Allen. I’ve posted a few comments here already in response to other posts describing my own experiences. I did purchase the newly designed Escalade (Sport Platinum.) That purchase was my 5th new car from that particular dealer. I was charged $25,000 extra. Zero negotiation. With the release of the new 23’ V series – (MSRP $155,000.) I was going to trade in my 22 Escalade and called asking because I was trading in one that I already paid the premium- which would allow them to then add like $15,000 to whoever buys my ‘old,’ car – would they still make me pay another premium on the 23 V series… They advised: YES I would – no exceptions! Also get this – because the V series Escalade are harder to get – the add on is more. An extra $50,000 more!! Add taxes, registration, extended warranty (instead of $2500 as per usual for extended warranty) – these new ones with so much technology. The extended is over $5,700!! Grand total $230,000!!
Anyway, you mentioned Land Rover- I just went looking at the new 2023 Range Rovers. Guess what!? $36,000.00 Above MSRP!! SMH
Bfilly
I have been driving Escalades for the last 23 years. When ready to trade IN 2021 I switched to the GMC Denali because of price ($40000.00) and find it to be just as good.
ROXANNE
I visited my local dealership and he said they charge a premium for Escalade V8 and for the Blackwing. I didn’t talk with him any further. I flew to Orlando and got a higher premium from the dealership there!
Mitch Kapanicas
Why is GM forcing their customers to purchase Onstar for $1500 in every new purchase?
Joseph
It’s nothing more than a glorified Suburban and the top line escalade is worth only about 80K new. In CA they have a 30 to 40 K mark up. 160k for a Escalade is crazy, that’s Range Rover territory. The Escalade is not close too a Range Rover
RJM
Wait ’til you see the dealer markups on the new Range Rover. I’m on my 12th Cadillac, a ’23 XT6, because I too refused to pay these markups on the Escalade even though my last 4 Cadillacs had been Escalades.
Melissa
Price out an Escalade V…prices are 50k-100k over. It’s insane.
Chad
A dealership in Florida contacted me about an allocation for an Escalade V and when I asked if there was a markup she told me that they are asking $150k over MSRP, I told her no thanks.
Charles Bongiorno
I’m finding 5k-10k “market adjustments….as they call it above sticker prices…ridiculous…what a shame…the new car market has gone into the craper
Kyle Caddy Johansen
California dealer pricing $40,000 OVER MSRP – zero negotiating. Also, ALL dealers are pricing the new V-series Escalades that cost $155,000 + MSRP – @ $50,000 + ABOVE MSRP!!
A 2023 Escalade V series WILL cost you well over $205,000.00 (NOT including taxes, registration, and extended warranty, etc) add another $20,000 for all of those things and your sitting at $230,000.00