The average transaction price (ATP) of a new Cadillac vehicle climbed 4.3 percent year-over-year in December 2023.
Last month, customers paid $72,191 on average for a new Caddy, up 4.3 percent compared to $69,207 in December 2022, according to the latest report from Kelley Blue Book. The ATP in December 2023 also represents a minor 1.6 percent drop month-over-month, down from $73,374 recorded in November 2023.
For reference, the ATP of a luxury vehicle in December 2023 was $62,523, down 8.8 percent year-over-year and down one percent month-over-month. Luxury vehicle share accounted for 20.2 percent of industrywide sales, down from 20.3 percent in November 2023, which was the first time that share climbed over 20 percent.
The increased share of luxury vehicle sales, in turn, continued to contribute to high industrywide pricing, which fell $48,759, up 1.3 percent from November, but down 2.4 percent year-over-year. Additionally, incentive spending is slowly increasing, representing 10.6 percent of ATPs in December 2023. For reference, one year ago, incentive spending accounted for only two percent of vehicle ATP nationwide.
“When we look at price strength, the pandemic created a seller’s market in which new vehicles were transacting above manufacturers’ suggested retail price in 2022,” said Michelle Krebs, executive analyst for Cox Automotive. “That market is all but gone now, as higher inventory has led to higher incentives and discounts – lower margins for dealers – and vehicles are now typically selling for under MSRP. The shift from a seller’s market to a buyer’s market is well underway.”
Meanwhile, it’s also worth noting that EV prices were down in December 2023. On average, customers shelled out $50,798 for an electric vehicle last month, down from $52,362 in November.
“2023 was a milestone year with 1,189,051 pure battery electric vehicles sold, accounting for 7.6 percent of all new-vehicle sales,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive.
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