Cadillac offering $10k off Escalade to fend off new Navigatorby Drew Johnson
The Lincoln Navigator has Cadillac a little scared.
Cadillac, concerned that the new Lincoln Navigator could eat away at its profitable SUV sales, is now offering up to $10,000 to current Escalade lessees to keep them in the Cadillac family.
The Cadillac Escalade has long dominated the Lincoln Navigator on the sales charts, but that's no longer the case following the Navigator's most recent redesign. Navigator sales are up 63 percent so far this year and they show no sign of slowing down anytime soon. The average Navigator spends just 10-days on dealer lots before being sold, while the range-topping $100,000 Black Label only hangs around for 7-days, according to Bloomberg.
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. That's about on par with the Cadillac Escalade.
Cadillac should be able to absorb the $10,000 discount, which is being offered to lessees of 2016 Escalade models. It's estimated that Cadillac makes at least $20,000 on every Escalade it sells, which contributes to $1 billion in annual profits for the brand.
Cadillac introduced an all-new version of the Escalade in 2015, and the next ground-up redesign isn't expect for a few more years.