To outmaneuver Navigator, Cadillac offering $10000 off Escalade

Joanna Estrada
April 17, 2018

In Cadillac and Lincoln showrooms, the battle of the behemoths is on. It still offers that discount to would-be Escalade owners if they now own any 1999 or newer Lincoln product.

Cadillac should be able to absorb the $10,000 discount, which is being offered to lessees of 2016 Escalade models. A spokesperson called it an "exclusive private offer" to hold onto current Escalade drivers.

"GM is trying to keep Escalade buyers out of Navigators, for sure", Schuster said in a phone interview. Morgan Stanley says it makes about $1 billion profit a year for the automaker. If you bought an Escalade and trade it in for a new one, you can get $7,500. Sales of the $73,250 are up 63 percent so far this year, while the similarly-priced Escalade has risen less than 10 percent in a very hot market for SUVs.

While the Escalade outsells the Navigator, Lincoln's contender is quickly gaining ground. On average, Navigators spend just 10 days at the dealership before they're sold, and opulent Black Label models get into six-figure territory like high-end Escalades.

More importantly for Lincoln, the average transaction price for the new Navigator is up $25,600 compared to a year ago, with the SUV's average selling price now hovering around $82,500. Analysts estimate that profit per vehicle can top $20,000 on the Escalade. "The new Navigator has sent a signal to Cadillac that they need to be in front of this and be aggressive".

This is at least the second significant deal GM has dangled to blunt the impact from the new Navigator.

Through the first quarter of 2018, Escalade sales rose 17 percent compared to previous year.

Other reports by Click Lancashire

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