Full-size SUV’s have always been a significant profit source for General Motors. It’s a trend that is clearly continuing with the launch of its all-new 2021 models, including the Cadillac Escalade. GM reports that nearly half of 2021 Escalades sold are transacting above $100,000.
Specifically, GM claims 43-percent of Escalades have had transaction prices in six-figure territory. At first pass that seems quite insane, but in reality it isn’t a huge surprise. The 2021 Escalade starts at $77,490 in base form. It doesn’t take many options for the MSRP to join into the six-figure territory. Buyers wanting the top-tier Platinum default to a six-digit price tag, while opting for the larger Escalade ESV drives the price higher yet. Throwing every option on an ESV model will actually drive the price north of $120,000.
Not only is Cadillac enjoying a generous boost in transaction prices with the 2021 Escalade, but also a sales increase. Today GM reported Escalade sales in the fourth quarter increased 6.4-percent over the previous year. However, GM did not disclose how many of the 9,454 units were of the 2021 model.
The trend of increasing sales and transaction prices has been seen before in this segment. Back in 2018 when the redesigned Lincoln Navigator launched it too enjoyed a generous increase in average transaction price. To date, Lincoln has not disclosed how many units transact above $100,000.
Nonetheless, this news certainly proves Cadillac was in dire need of a new Escalade. Prior to the launch of the 2021 model Cadillac had substantial discounts on the Escalade as a competitive response to the newer Navigator. It also proves that full-size luxury SUVs clearly haven’t hit a price ceiling with American consumers willing to shell out the cash (or financing) for them.