Trying to keep current customers in the family.
There’s no doubt that if you’re into giant, American luxury SUVs, 2018 is a good year. You have the Cadillac Escalade and the Lincoln Navigator to choose from, depending on your stylistic preferences. It also means the two will compete for your hard-earned dollars.
When Cadillac unveiled the fourth-generation Escalade in 2015, it was competing against a dated Lincoln offering. However, that changed with the all-new Navigator for the 2018 model year. In January this year, Lincoln sold 1,288 Navigators to Cadillac’s 2,241 Escalades, and the Navigator is quickly gaining ground. So, in hopes of keeping current Escalade owners and lessees from jumping ship, the automaker is dangling some cold, hard cash.
Yes, the luxury automaker is offering a $10,000 discount on the Escalade, but the offer is only for 2016 model lessees. That’s a particular group of customers; however, considering leases last a couple years, the targeted discount makes sense. Escalade owners get a $7,500 discount. Both promotions run through May 31, which are supposed to help “keep people in the family,” according to GM spokesman Jim Cain speaking with Automotive News. The segment is known for prices that can reach six figures, which give both automakers the ability to offer discounts while still keeping the vehicles profitable.
“GM is trying to keep Escalade buyers out of Navigators, for sure,” Jeff Schuster, an analyst at LMC Automotive, told Automotive News by phone. “You've got a fresh Navigator and you've got an Escalade that is not new and is starting to age.”
This isn’t the first time Cadillac offered customers money. Last year, the automaker offered Lincoln owners $5,000 to trade in any 1999 or newer model for a new Escalade. If Navigator sales continue to gain on the Escalade, look for both automakers to entice customers into their showrooms in hopes of outselling one another. In the end, it’ll be great for consumers.
Source: Automotive News