Cadillac announced this week that it is relaunching its certified pre-owned program, which it said aims to bring new shoppers to the luxury brand and help increase the resale value of Cadillac vehicles. Cadillac joins General Motors’ other three brands (Chevrolet, Buick and GMC) in offering certified pre-owned vehicles to shoppers.
“While the immediate benefit is provided to buyers of these pre-owned vehicles, it's also a key component for assuring strong resale values for our new car customers,” Kurt McNeil, vice president of Cadillac sales and service, said in a statement. “An expanded pool of pre-owned Cadillacs thoroughly inspected by trained professionals will raise the brand's long-term reputation for quality.”
Automakers are trying to compete in the used car space by offering certified pre-owned programs and financing incentives. A vehicle is labeled certified pre-owned usually by going through a rigorous inspection process and is then reconditioned and given a warranty. Occasionally, these pre-owned vehicles come with used car financing deals from the manufacturer, which helps entice shoppers because used car loan rates are generally higher than new car interest rates.
Cadillac said it will also cover the first three car payments and offer interest rates as low as 1.9 percent for its certified pre-owned vehicles through May and June for qualified buyers.
Forbes reports that Cadillac’s new CPO program has a full 172-point vehicle inspection and reconditioning system, six-year/100,000-mile limited warranty with 24-hour roadside assistance, courtesy transportation for warranty services and a complete vehicle history report. Forbes says Cadillac’s new and improved CPO program “looks like it’s now among the best in the business.”
Acura, Audi, BMW, Buick, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche, Saab and Volvo offer similar certified pre-owned vehicle programs. Even ultra-luxury brand Rolls-Royce recently started selling used models through its new certified pre-owned program, USA Today reports. Rolls-Royce is calling its CPO program “Rolls-Royce Provenance.”
Although CPO programs are generally offered by luxury auto brands, a few mainstream brands also have a certified pre-owned program, including Honda, Mazda and Volkswagen. Since the used car market is experiencing low inventories and high prices right now, shoppers are looking for ways to get the most for their money. The Detroit Free Press reports that used car prices are at record highs right now, and dealers are offering top dollar to owners of fuel-efficient used vehicles.
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