Cadillac has an army of 900 dealerships at its disposal, and it plans to leverage the network as it expands its Book car-subscription service. Automotive News reported on Sunday that the brand has begun a dealership referral initiative, which rewards dealers for directing customers to Book.
The program began on March 1, and dealers receive a sizable financial reward for placing customers in Book by Cadillac. Melody Lee, global director of Book, did not expand on how large the incentive is, but said it’s only the beginning to involve dealers in the program.
So far, a handful of dealers have already signed on for the program and Cadillac has already received a few dozen referrals.
Cadillac launched Book ahead of rivals to gain an early advantage in the car subscription market. Since then, Volvo and Porsche have introduced the most direct rivals to Book. Cadillac’s program costs $1,800 per month and includes the ability to swap cars 18 times a year, registration, taxes, insurance and maintenance.
The program initially cost $1,500 per month, but the $300 raise came as Cadillac understood customers were willing to pay more. It also gave dealers more distance from leasing and financing cars in the traditional sales model, Lee told AN.