Why is Cadillac not holding its value?

[JudeDella]

Cadillac does not hold its value due to severe product homogenization. Taking the Cadillac ATS-L as an example, here are the specific details of the Cadillac ATS-L: 1. Vehicle Positioning: The Cadillac ATS-L is a compact luxury sports sedan launched by the Cadillac brand. 2. Powertrain: It is equipped with a 2.0T engine, delivering peak torque and maximum power of 400 N·m and 279 horsepower, paired with a 6-speed automatic manual transmission and standard paddle shifters. 3. Chassis Suspension: The ATS-L features a front-engine, rear-wheel-drive layout, with front suspension being a double-pivot McPherson strut and rear suspension a five-link independent setup.

[Aurora]

Having driven a Cadillac for many years, I feel its low resale value is mainly due to its ambiguous brand positioning. The discounts are substantial when buying new cars, and manufacturers often promote price cuts to attract customers. However, after three to five years of use, the depreciation is too rapid, and the second-hand market prices just don't hold up. It's neither here nor there in the luxury segment—less reliable than Lexus and not as premium as Mercedes-Benz or BMW. Buyers in the used family car market often see it as an American gas-guzzler with high maintenance costs, poor fuel efficiency, and frequent minor issues. I tried selling my ATS, but buyers aggressively bargained, citing expensive parts replacement and severe depreciation. In the end, I had to sell it at half the price, which was heartbreaking. The demand for Cadillacs in the used car market is low, with buyers preferring Japanese or German brands, leading to naturally low residual values. The car itself is comfortable and powerful to drive, but the steep drop in value when reselling leaves many owners regretting their purchase.

[DeTeagan]

Cadillac's poor resale value largely stems from reliability issues. While recent models have improved, older versions like the CTS often suffered from powertrain failures with expensive repair costs that accumulated over time, dragging down resale value. Buyers in the used car market aggressively lowball prices due to concerns about these hidden problems. Electronic components like touchscreen systems age too quickly, becoming technologically obsolete within a few years and accelerating depreciation. High fuel consumption increases daily operating costs, further damaging residual value. The brand's heavy new-car discounts boost sales but trigger steep immediate depreciation - twice as fast as German rivals. Unlike Toyota, Cadillac hasn't built a durable reputation, causing potential used-car buyers to avoid the brand, resulting in naturally low retention rates. I believe switching to a more reliable brand would be wiser.

[MaggieLynn]

Among young people buying used cars, it's a consensus that Cadillacs depreciate quickly. Initial promotions on new cars lower their value, leading to a price crash after a few years. In the market, young buyers prefer German Audis or Japanese cars, considering them cooler and better at holding their value. Cadillac's slow technology updates make older models less desirable, and buyers fear expensive maintenance and high fuel consumption, leading to aggressive price negotiations. It's common for a three-year-old Cadillac to be worth only half its original price. It might be better to wait until after the depreciation period to get a bargain.