Cadillac will offer an extended warranty on all the cars in its new used-car leasing program and ensure that they're reconditioned as well, the luxury carmaker announced this week.
The program is aimed at re-leasing or selling 45,000 cars coming back to dealers at the end of mostly two-year leases. Although the marketing effort became public last month, this is the first time Cadillac has provided details on how the program will work.Cadillac said:
Warranties will be extended from four years or 50,000 miles to six years or 70,000 miles for the customer who buys or leases a used car.
The monthly payment on a used car will be about $100 less than the payment on a lease for the same model new, but that will vary according to the mileage on the car. The customer will likely have to make a down payment on the used car lease or pay more per month.
Each used car offered for lease or sale must be reconditioned to pass 31 specific criteria. Among those: all tires must match and have at least 20,000 miles of remaining tread life, all exterior body panels must be free of dings and stone chips.
Window stickers will certify every car that meets those criteria.
Dealers will pay for any repairs needed to certify the car.
Cadillac expects the number of cars coming off leases to rise to 67,000 in 1995 and to 100,000 by 1997.