The average transaction price (ATP) of a new Cadillac vehicle shot up by 10.1 percent year-over-year in February 2024.
According to the latest report from Kelley Blue Book and Cox Automotive, buyers shelled out an average of $73,340 per new Cadillac vehicle last month, up from an average of $66,614 during February 2023. Compared to an average ATP of $71,824 during January 2024, ATPs increased 2.1 percent in February 2024.
Cadillac’s dramatic ATP increase last month does not reflect the trends of the broader automotive industry. For reference, industrywide ATP was $47,244 last month, down 2.2 percent year-over-year and down 0.1 percent over January 2023. Meanwhile, ATP of luxury vehicles increased less than a percent from $60,978 in January 2024 to $61,424 in February 2024.
Last month, incentives for luxury vehicles averaged 6.1 percent of ATP. While that is lower than in January, it’s almost double the levels observed in February 2023. Luxury brands and dealers continue to offer generous discounts to prop up sales during the traditionally slower part of the sales season, especially as dealer inventory increases.
“While everyone may applaud that prices are coming down, even marginally for the moment, affordability is still challenging the market,” said Erin Keating, executive analyst for Cox Automotive. “Most shoppers have not seen their incomes increase as quickly as vehicle prices, so affording a new vehicle remains difficult. We should also note that despite rising inventory, which is good for consumers, the levels are muted, not alarming.”
It’s also worth noting that the average price paid for an electric vehicle was $52,314 last month, down from $54,863 in January on softer demand. KBB notes that high price tags continue to stifle widespread adoption of EVs in the U.S. In fact, EVs are an average 19 percent more expensive than non-luxury vehicles.
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