DETROIT -- Lincoln will hold its first certified pre-owned marketing event in April as part of its effort to put its certified program on a par with those of its luxury-brand rivals.
"We're trying to boost the residual values of our used cars," said Kevin Cour, Lincoln manager of sales and service. If Lincoln dealers are going to buy more off-lease cars, "they have to have confidence they can step up to the dollars to buy that car, recondition that car and be able to retail that car" more profitably than a regular used car, he said.
Lincoln is spending more advertising and incentive dollars on its certified program, and the brand has for the first time named dedicated people to manage the program, including five regional sales managers.
Dealers can now earn as much as $500 in dealer reserve from Lincoln Financial Services on certified vehicles, up from $100 before. Dealer reserve is the amount of money dealers receive for generating a car loan. Lincoln Financial also is putting a $1,500 spiff into its retail credit offering on Lincoln certified vehicles.
"They're adding $1,500 to the book price when we do a loan," said Larry Taylor, owner of Beau Townsend Lincoln in Vandalia, Ohio. "That's huge."
Cour said it's all part of helping Lincoln compete with luxury rivals.
"This is all standard stuff for the premium brands," Cour said. "You'll find some of our best CPO premium competitors have run this playbook for quite some time with a great degree of success. April will be our very first CPO sales event and we're excited about it."