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Founded in the early 1900s, Cadillac is the division of General Motors Company that manufactures luxury cars. With the main market in China, the United States, and Canada, Cadillac is sold in more than 34 countries and has a total market share of 0.77% in the world.
But does Cadillac hold its value after purchase? What are the depreciation trends of 6 popular Cadillac models? Why does it depreciate the most in the first year? And which model should you buy to save maximum money?
I am going to answer all of these questions in this article and will also shed some light on how to decrease Cadillac car depreciation.
Do Cadillacs Hold Their Value?
Cadillac holds its value the best for a shorter time frame but does not perform well in the long time run. Cadillac holds 50% of its value after 5 years of operation.
Cadillacs are unlike economy sector brands. Being a luxury segment brand it is bound to lose its value more rapidly.
The below graph shows the average depreciation of Cadillac cars over the period of 12 years. After one year of operation, the residual value of Cadillac cars is 73.69%, and it further drops to 58% after 4 years.
While, the following illustration shows the year-to-year depreciation percentage of Cadillac cars. On average, Cadillac cars depreciate the most in the first and seventh years. For the rest of its life, Cadillac depreciates from 2% to 8%.
Also read: Are Cadillac Parts Expensive? (+ Buying Tips)
6 Popular Cadillac Models and Their Depreciation
Now let us dig deeper and look at the depreciation rate of 6 popular Cadillac models over the period of 10 years.
1. Cadillac Escalade
Cadillac Escalade is a full-size SUV car that falls in the luxury category. Its major competitors are the Mercedes-Benz M Class, Range Rover, and Lexus LX. With both RWD and 4WD options, it is a 7 seater car. It comes with fuel mileage of 14-21 miles per gallon in the city area.
Initial Selling Price: $87,275
Percentage Depreciation after 5 Years: 47%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $21,356 | 75.53% | $65,919 |
| 2 | $26,409 | 69.74% | $60,866 |
| 3 | $31,375 | 64.05% | $55,900 |
| 4 | $35,207 | 59.66% | $52,068 |
| 5 | $41,141 | 52.86% | $46,134 |
| 6 | $47,757 | 45.28% | $39,518 |
| 7 | $56,947 | 34.75% | $30,328 |
| 8 | $60,944 | 30.17% | $26,331 |
| 9 | $65,395 | 25.07% | $21,880 |
| 10 | $68,511 | 21.50% | $18,764 |
2. Cadillac CT4
Cadillac CT4 is a compact luxury car and was first produced in 2019. It is the replacement for the Cadillac ATS model. With both RWD and AWD options, it is a 5 seater car and comes with fuel mileage of 16-23 miles per gallon in the city area.
Initial Selling Price: $44,448
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Percentage Depreciation after 5 Years: 52%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $8,743 | 80.33% | $35,705 |
| 2 | $12,548 | 71.77% | $31,900 |
| 3 | $17,188 | 61.33% | $27,260 |
| 4 | $20,193 | 54.57% | $24,255 |
| 5 | $23,140 | 47.94% | $21,308 |
| 6 | $26,118 | 41.24% | $18,330 |
| 7 | $28,420 | 36.06% | $16,028 |
| 8 | $30,331 | 31.76% | $14,117 |
| 9 | $32,660 | 26.52% | $11,788 |
| 10 | $34,443 | 22.51% | $10,005 |
Also read: Mercedes vs. BMW- Which is Cheaper to Maintain?
3. Cadillac CT5
Cadillac CT5 is a mid-size luxury car that draws its inspiration from Cadillac fastback models of the 1940s. With both RWD and AWD options, it is a 5 seater car and comes with fuel mileage of 17-23 miles per gallon in the city area.
Initial Selling Price: $47,439
Percentage Depreciation after 5 Years: 52%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $9,331 | 80.33% | $38,108 |
| 2 | $13,392 | 71.77% | $34,047 |
| 3 | $18,345 | 61.33% | $29,094 |
| 4 | $21,552 | 54.57% | $25,887 |
| 5 | $24,697 | 47.94% | $22,742 |
| 6 | $27,875 | 41.24% | $19,564 |
| 7 | $30,332 | 36.06% | $17,107 |
| 8 | $32,372 | 31.76% | $15,067 |
| 9 | $34,858 | 26.52% | $12,581 |
| 10 | $36,760 | 22.51% | $10,679 |
4. Cadillac CT6
Cadillac CT6 is a full-size luxury car and was first produced in 2016. According to IEEE, it was among the top 10 tech cars of 2018 and it is the most popular sedan produced by Cadillac. With an optional AWD, it is a 5 seater car that comes with a fuel mileage of 14-18 miles per gallon in the city area.
Initial Selling Price: $81,848
Percentage Depreciation after 5 Years: 52%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $16,119 | 80.33% | $65,829 |
| 2 | $23,134 | 71.77% | $58,814 |
| 3 | $31,689 | 61.33% | $50,259 |
| 4 | $37,229 | 54.57% | $44,719 |
| 5 | $42,662 | 47.94% | $39,286 |
| 6 | $48,153 | 41.24% | $33,795 |
| 7 | $52,398 | 36.06% | $29,550 |
| 8 | $55,921 | 31.76% | $26,027 |
| 9 | $60,215 | 26.52% | $21,733 |
| 10 | $63,502 | 22.51% | $18,446 |
Also read: Are Cadillacs Reliable? (Brutal Truth)
5. Cadillac XT4
Cadillac XT4 is a sub-compact luxury SUV and was first produced in 2018. Its main competitors are Chevrolet Equinox and GMC Terrain. With both FWD and AWD options, it is a 5 seater car that comes with fuel mileage of 22-24 miles per gallon in the city area.
Initial Selling Price: $41,596
Percentage Depreciation after 5 Years: 49%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $10,944 | 73.69% | $30,652 |
| 2 | $12,803 | 69.22% | $28,793 |
| 3 | $15,594 | 62.51% | $26,002 |
| 4 | $17,262 | 58.50% | $24,334 |
| 5 | $20,582 | 50.52% | $21,014 |
| 6 | $23,597 | 43.27% | $17,999 |
| 7 | $27,894 | 32.94% | $13,702 |
| 8 | $29,521 | 29.03% | $12,075 |
| 9 | $31,717 | 23.75% | $9,879 |
| 10 | $32,911 | 20.88% | $8,685 |
6. Cadillac XT5
Cadillac XT5 is a compact luxury SUV and was first produced in 2016. It is the replacement of Cadillac SRX. It is the best-selling model of Cadillac in the U.S market. With both FWD and AWD options, it is a 5 seater car that comes with fuel mileage of 18-22 miles per gallon in the city area.
Initial Selling Price: $52,799
Percentage Depreciation after 5 Years: 52%
10-Year Depreciation Projection:
| Vehicle Age | Depreciation | Residual Value | Vehicle Worth |
| 1 | $10,386 | 80.33% | $42,413 |
| 2 | $14,905 | 71.77% | $37,894 |
| 3 | $20,417 | 61.33% | $32,382 |
| 4 | $23,987 | 54.57% | $28,812 |
| 5 | $27,487 | 47.94% | $25,312 |
| 6 | $31,025 | 41.24% | $21,774 |
| 7 | $33,760 | 36.06% | $19,039 |
| 8 | $36,030 | 31.76% | $16,769 |
| 9 | $38,797 | 26.52% | $14,002 |
| 10 | $40,914 | 22.51% | $11,885 |
Why Do Cadillacs Hold Their Value so Bad?
Low demand, public perception, and having an image of a luxury car brand are the main factors behind poor value retention of Cadillac cars.
- Luxury cars like Cadillac are very expensive, to begin with, therefore they will atomically depreciate much faster than an average car.
- Most people, who can afford to buy a new Cadillac, would not want to buy a second hand Cadillac. Therefore, there isn’t much demand for used Cadillacs and it is one of the main reasons behind the poor value retention of Cadillac cars.
- Cars like Cadillac are expensive to maintain and repair. They also face reliability issues within the first few years, thus people usually avoid paying a hefty price for such vehicles.
Also read: BMW vs Mercedes: (Depreciation Comparison)
Why Do Cadillacs Lose Value Fast in the First Year?
An average Cadillac car loses one-fourth of its value in the first year alone. The major behind it is the release of a new model every year. Technology is changing rapidly, and people often prefer to buy the latest model of a car rather than the old one.
Another reason is the low demand for one-year-old Cadillac cars. Because of this simple supply and demand principle, it’s very hard to find a buyer for one-year-old Cadillac cars. Therefore, most Cadillac cars lose 26% of their value in the first year alone.
Which Cadillac to Buy, When to Buy it, and When to Sell it to Save as Much as Possible?
To save the maximum amount of money you should buy a Cadillac Escalade which is only one year old and sell it in the sixth year.
Cadillac Escalade has a good market reputation and holds its value. The initial selling price of a new Cadillac Escalade is $87,275 and a year old Escalade will cost you around $65,866.
Thus you would only be paying 76% of the total price with 92% of the vehicle’s life still intact.
After the first year, Cadillac Escalade depreciates the most in the seventh year so selling your Escalade in the sixth year will get you more money.
One-year-old Escalade will be like a brand-new model and you can use it for good five years. Two or three years old Cadillac will also ensure good value retention and can save you some money.
What Can You Do to Decrease Any Cadillac Depreciation?
Below are some of the ways by which you can decrease your Cadillac depreciation and save some money:
- If you don’t plan to keep your vehicle for a long time, then avoid buying a new Cadillac as it depreciates the most in the first year.
- Regularly maintain your Cadillac car and keep it in good condition for a better resale value.
- Try to buy a used Cadillac with low mileage because the more mileage the car has the less it will be worth.
- Try to keep the total number of owners of your Cadillac as minimum as possible. More owners mean lower resale value in the market.
- Maintain the full-service history of your Cadillac car, as it’s a great way to reassure your buyer that the car was well maintained.
Does Cadillac Hold its Value Well When Compared to Other Similar Car Brands?
In comparison to Audi, Lexus, and Mercedes, Cadillac does not hold its value well. But when compared to brands like Land Rover, Jaguar, and Infiniti, its resale value is much better.
Cadillac value retention varies with the model, region, and at the time you are buying it. In some places, the argument that Cadillac has bad resale value does not hold.
With new models like CT5 and XT5 launched in the market, the future looks bright for Cadillac cars. Buying the right model at the right time will save you more money.
References:
caredge.com, en.wikipedia.org, statista.com, usnews.com, quora.com, carsalesbase.com, themoneycalculator.com, garagedreams.net, autotribute.com
