Cadillac Brings Down CTS Pricing

Cadillac CTS Price Drop

When you want your product to upmarket, the typical way is enhancing your product design and quality, and then raising its price.

This was exactly what Cadillac had done to its latest 3rd-gen CTS sedan: the new CTS sedan is way better than its predecessor in all aspects, plus it’s more expensive. It looks like Cadillac shouldn’t worry about its sales.


But in fact, the sales of the new CTS sedan is now proven to be big trouble to the auto maker. By browsing through all Cadillac dealerships’ inventory across the states, you can see that the situation is so bad that some dealerships still have the same amount of 2014 CTS as  the 2015 models sitting in their inventory. We’re only one week into 2015 and they still have lots of 2014 model year cars in the lot. I think it’s safe to say that it’s definitely not a good sign for car dealerships.

One necessary requirement that makes the “higher quality higher price” scheme work should be: brand reputation has been established. The issue that the new CTS currently has is: its MSRP is much higher than the previous generation (2013 CTS starts at only $38,905, but the new 2014 CTS starts at $46,205). Although the new one is better than the old one, it takes time to build up the image, and let the general public to accept that and change their perception.

Therefore the more suitable way should be: selling the current new CTS at a lower and more affordable price, building up the reputation gradually, and then raising the MSRP.

Obviously Cadillac now finally knows this and it announced its plan to cut the 2015 CTS price by $1,000 to $3,000. Upper trims will receive the heaviest price cut of $3,000, the 2.0T will see a $2,000 reduction while the base models get $1,000 lower pricing. Besides this, Cadillac is also throwing in some features as standard, which previously are extra-cost options.

So this is good news for those who want to buy a CTS this year. However we ‘re more eager to see how Cadillac is going to price its latest 2016 CTS-V, which is going to debut in next week’s Detroit auto show.


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