Cadillac Offers Big Discounts on the Escalade to Counteract Growing Sales for the Lincoln Navigator
Returning Cadillac customers can earn up to $10,000 off the purchase of a new Escalade SUV
For the 2018 model year, Lincoln has introduced an all-new version of its Navigator vehicle. The move seems to have paid off for the brand, as Lincoln Navigator sales by up by 63.3% year-over-year during the first quarter of 2018.
As can be expected, Cadillac is none too happy about the Navigator’s recent success. That is why the brand is rolling out discounts of up to $10,000 for its 2018 Cadillac Escalade SUV.
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To qualify for the $10,000 discount, customers must have previously leased a 2016 Cadillac Escalade model. For those who bought the Escalade instead of leasing it, a smaller $7,500 discount is available.
The purpose of these discounts is to “keep people in the family,” according to GM spokesman Jim Cain. Cadillac is no stranger to introducing these customer loyalty discounts.
Back in November of last year, GM had offered a $5,000 incentive to owners of any Lincoln model produced since 1999 when they traded said model in for a new Escalade. Morgan Stanley estimates state that the Escalade produces approximately $1 billion in annual profit, so Cadillac certainly doesn’t want to see this vehicle lose any ground.
For the time being, the Escalade’s popularity doesn’t show any signs of fading. Cadillac Escalade sales are up 17.1% so far this year, with a total of 5,035 units sold.
Nevertheless, the Navigator is quickly catching up. Lincoln has delivered 4,062 Navigator vehicles so far this year. In March alone, Lincoln delivered 1,711 Navigators.
Customers are racing out to purchase these high-end Lincoln vehicles. The average 2018 Lincoln Navigator SUV spends a total of just 10 days out on a dealer lot, with the high-end Black Label Navigator only spending seven days in showrooms.
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“This is a particular battle that GM doesn’t want to lose ground in,” explained Jeff Schuster, an analyst at LMC Automotive. “The new Navigator has sent a signal to Cadillac that they need to be in front of this and be aggressive.”
The Escalade’s current discount is available from now through May 31.
News Source: Bloomberg