Have you heard about the $40,000 psychological barrier when it comes to car prices? Apparently, Cadillac believes in this and has decided to cut almost $1300 off the price tag of the CTS Sport Wagon, bringing its base price to $39,150.
This price is still about $3000 more than a base 2010 CTS sedan and about $5000 above a base SRX crossover, which is now Cadillac's least expensive vehicle.
Cadillac spokesman David Caldwell said that even if the SRX and CTS wagon are both five-door Cadillacs, the SRX has little to do with the lowered pricing. Caldwell disclosed that this change in price is about making some adjustments to its marketing approach in order to strengthen its position with CTS in its competitive class.
Since the latest generation CTS went on sale in model year 2008, pricing has increased about $7000. Higher average transaction and base prices indicate that the CTS is moving into a clearer pricing position as a BMW 5 Series and Audi A6 fighter.
This move makes room for the smaller rear-wheel drive entry-level sedan on the way. The SRX crossover actually doesn't need a price cut for its units to be sold.
However, it was noted earlier this month that Cadillac had a five-month supply of the CTS. This price reduction is expected to maintain the brand's momentum, as should the $1,000 incentives on the CTS sedan and wagon currently being offered. [via usatoday]