Cadillac is redoubling its focus on certified pre-owned sales ahead of an expected influx of off-lease vehicles returning to dealership lots.
CPO sales will be a major component of Cadillac's new dealer-incentive structure, Project Pinnacle, which was outlined for dealers in February and takes effect this fall. Dealers can earn bonus money if their CPO sales equal at least 20 percent of their retail new-car deliveries. Hitting 30 percent pays even more.
Cadillac wants to better control its lease returns as part of a broader effort to improve residuals, says Will Churchill, chairman of the brand's dealer council. He said the number of lease returns nationally will grow sharply over the next few years, starting in the second half of this year.