Cadillac is beefing up its certified pre-owned program in anticipation of a surge in available off-lease vehicles.
The American luxury maker announced today that cars sold under its certified pre-owned program will be covered for six years and 70,000 miles — whichever comes first. According to Cadillac communications manager David Caldwell, the upgraded service will equalize its pre-owned service program with the brand’s new car care.
Most owners with vehicles from the 2011 and later model years will also be able to buy the brand’s Premium Care Maintenance program, although certain vehicles not restricted by nameplate will be excluded.
The program offers services including 24-hour roadside assistance, courtesy transportation and a three-month complimentary subscription to OnStar and Satellite Radio.
“Enhancing the certified pre-owned program adds valuable benefits for customers and the entire Cadillac brand,” said Chase Hawkins, vice president of Cadillac U.S. sales and service. “Improving Certified Pre-Owned supports the ongoing long-term increase in resale value, and is another tool that will enable us to attract new customers.”
That’s good news for the used car market, which saw rising prices on short supplies when demand for leases fell during the recession. While Caldwell couldn’t offer specific figures, he said Cadillac lease rates fell below 10 percent of sales three years ago, but that it has since returned to 40 percent.
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Cadillac’s sales are still far from pre-recession levels, and over the past three years sales haven’t really improved much. At the worst point, the brand dipped to 109,000 units in 2009 and has since recovered to roughly 150,000 in 2012. That’s still far from the 214,000 units Cadillac reported in 2007, which is part of the reason why building a loyal customer base is so important if the brand hopes to keep building sales.
A reinvigorated product line will be central to that plan with the ATS compact sedan, XTS full-size and SRX crossover currently accounting for almost all the brand’s sales.
More products are on the way, and Cadillac’s rapid-fire approach could work if customers take the bait. Up next, there will be an all-new version of the now-larger CTS luxury sedan followed by a new Escalade.
Later down the line, GM is expected to offer a diesel version of the ATS. More immediately, the ELR will also serve as a luxury alternative to green car enthusiasts with tastes too discerning for Volt ownership.
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