German brands may dominate U.S. luxury vehicle sales, but second-tier marque Cadillac is commanding higher prices.
Compare the average transaction prices for June, compiled by Kelley Blue Book. Cadillac buyers paid $60,366, more than best-selling luxury brand Mercedes-Benz's $56,736, No. 2 BMW's $54,336 and No. 4 Audi's $50,860.
Cadillac has less than half the U.S. sales volume of either Mercedes or BMW and, at No. 7, is in the middle of 13 non-exotic luxury players.
So why are Cadillac's prices higher? For starters, Cadillac is truck-ier than the Germans, and Americans generally will pay more for SUVs and crossovers than the corresponding size sedans and coupes.
So far this year, 65 percent of Cadillac's sales are light trucks. By comparison, Audi's sales are just 51 percent trucks, and Mercedes' (excluding vans) and BMW's are both just 46 percent.
Then there are the lineups. As global luxury brands, the Germans have more models developed to appeal to world customer preferences for smaller and more carlike vehicles. Cadillac's primary market is the U.S., with its wide open spaces and cheap fuel prices.
And in recent decades, the German brands have been actively expanding into more downscale segments while Cadillac has been pushing upward. Almost a quarter of its 2017 sales have been Escalades, with base prices including shipping ranging from $74,590 to $99,390 for an Escalade ESV in Platinum trim.
