Price Wars: GM Drops Cadillac Escalade Sticker by $10K

price wars gm drops cadillac escalade sticker by 10k

They might not happen as often as they once did, thanks to deregulation leading to mergers and consolidation, but fare wars once were a regular occurrence as airlines fought to snag passengers by dropping prices.

The automotive industry isn’t immune to battles waged on price. Even luxury makes sometimes have to offer deep discounts to keep the competition at bay.

Which is what Cadillac is doing to stave off a challenge from Lincoln. Sort of.

Cadillac is offering up to $10,000 off the Escalade because the rival Lincoln Navigator is selling well. Except, as per usual, there’s a catch.

The $10K discount is only offered to lessees of 2016 Escalades (all versions), while owners are being tempted by a $7,500 discount, according to an Automotive News article that cites a memo obtained by Bloomberg News. The offer expires May 31st.

Automotive News cites an analyst’s estimate that the Escalade makes $1 billion in profit for the General. Given that the Navigator was recently redesigned and the Escalade is aging, it makes sense for Cadillac to throw money at current owners in an effort to keep them from straying.

The Escalade still outsells the Navi, but Lincoln’s large SUV has seen a sales increase of 63 percent over the past year, with an average on-lot time of 10 days. Black Label models are lingering on lots for only about a week. Not only that, but the average price paid for a Navigator was up over $25K.

With an estimated per-vehicle profit of $20,000, GM has a cushion that allows for incentives. Cadillac already offered a $5,000 incentive for Lincoln owners to trade in any post-1999 models last fall.

Like it or not, the Escalade remains an important flagship vehicle for both Cadillac and GM. The company doesn’t want to lose ground while waiting for the next Escalade, which is expected as a 2020 model.

Sorry first-time luxo-barge buyers – this discount doesn’t appear to apply to you. But given the Escalade’s importance, you might be able to get a good deal just by asking nicely. Or, more likely, by suggesting you might check out that hot new Navigator.

[Image: Cadillac]

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  • TheEndlessEnigma TheEndlessEnigma on Apr 17, 2018

    What a fuging butt-ugly sack of spit. Luxury buyers? Oh, ok. If by luxury you mean bling bling ghetto wannabees then yes. Who, with any sense of class and self respect makes a conscious decision to buy a Escapade? You buy one of these things and you are also willfully buying a vehicle with a (what was it, $20000 profit) 20% - 30% margin? I don't care how closely you negotiated the price, you still got ripped off....for a blinged up Tahoe.

    • Ernest Ernest on Apr 17, 2018

      While I'm not disagreeing with you, we all know there's more emotion than reason going on in a car purchase. If it was all logic and practicality, how many C-Class's or 3-Series would actually get sold?

  • Socalduck Socalduck on Apr 19, 2018

    In 10 years, the LC/LX is the least likely to be a work truck for gardeners or painters.

  • Dave M. I will say this generation styling has grown on me; previously I thought the Fiat version was far better looking. Miatas have always been pure joy to drive.
  • Kendahl A Tesla feature has been free, periodic, over-the-air, software updates that add new features or improve existing ones. Owners brag that their x-year-old car is better today, because of the updates, than it was brand new. Will Tesla start charging for these updates after a few years? Teslas hold their value very well. I suspect losing free updates will do serious damage to that.
  • BklynPete When I was a kid, the joke about Nissan choosing the name Datsun goes like this:Nissan execs were uncomfortable with the World War 2 connotations of their name in the North American market. Seeing how successful VW was over here, they went to VW's most-recent German ad agency. The Japanese told the Germans they needed a new name. The Germans agreed. They asked the Nissan execs when they wanted a review of potential names. The execs said two weeks. The German ad people said, "dat soon?"I will be crucified.
  • Kendahl Modern cars are better mechanically in every way compared to cars from the 1960s. But, and my age is probably showing here, the older ones are prettier.
  • Master Baiter I like the references to Red Barchetta. My fun car is a spiritual cousin to this Miata: 2001 BMW M Roadster--green with tan leather; five speed.
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