General Motors is hoping to attract more conquest buyers to the Cadillac brand with a promotion that pays drivers $100 to take a test drive. The nationwide campaign began in March and runs until the end of the month.
Bill Peffer, U.S. vice president for Cadillac sales and service, told The Detroit News thousands of people have come in to take a new Cadillac for a spin and receive their $100.
“This is our way of way of trying to reach out and get people,” he said. “The way to conquest in that super competitive market is to get people’s seats in seats.”
To be eligible for the payout, which comes in the form of a $100 pre-paid Visa card, motorists must be 21 or older, have a valid driver’s license and proof of insurance and own a 2004 or newer non-GM vehicle. Additionally, if consumers opt to buy a new Cadillac and they don’t own or lease a GM vehicle, they will receive an extra $1,500 incentive toward the vehicle.
Last year Cadillac posted U.S. sales gains of nearly 22 percent, but sales have slid 7.3-percent year-over-year in the first quarter of 2014. The brand is looking for the promotion to help get more customers in showrooms, particularly those that have not driven or owned a Cadillac before.
Giving away $100 for a test drive may seem costly and a little risky, but industry analysts say it is a relatively affordable promotion.
“It’s actually a pretty inexpensive marketing campaign,” said Larry Dominique, president of ALG, an automotive consulting firm.
The first shipments of the 2015 Escalade left GM’s assembly plant in Arlington, Texas last week. Peffer said they have thousands of unfulfilled orders for the SUV. Ads for the redesigned and overhauled SUV will begin to air next month.
“As a brand that’s growing, we know we have to do a job of maintaining our loyal owner base,” Peffer told Detroit News. “But, frankly, we have to (win buyers who currently drive other brands) at a higher rate in order to achieve our sales goals. This car will help us do that.”
Comments
“non-GM vehicle” – damn it!
that’s not fair!! Only non-GM vehicles??
“Additionally, if consumers opt to buy a new Cadillac and they don’t own or lease a GM vehicle, they will receive an extra $1,500 incentive toward the vehicle.”
Discounts destroy residuals and brand image. Not something Cadillac needs.
Granddaddy has a point incentives destroy residuals and brand image, but $100 to go for a test drive does sound like an awesome idea to get customers.
Cadillac shouldn’t have to pay to get people to test drive their cars. The product should be compelling and stirring enough to reach buyers on an emotional level; to meet their wants and desires.
This may sound vulgar, but a luxury car should make the driver horny. Yes, horny. Make an exceptional car that people want rather than make a car that you have pay people to test drive.
Just look at the 2014 Z28. It’s not a luxury car per se, but it’s proof that GM can build and sell an exclusive, limited production car on the merits of its performance, and you can bet GM didn’t need to offer $100 for test drives.
When you lived with the penny pinchers of Southern California, you’ll understand why Cadillac has to offer money in order to get people to buy their cars. These people only look at the cars they know and love, BMW Mercedes, Toyota and Honda. They will only look at an American car like Cadillac if there’s some cash on the hood, even if the car is better than what they used to drive, they’ll still go back to the crap they’ve been driving before.
That is so true!! People there can’t get out of their comfort zone! Also to the fact that people that live in Southern California are mostly Asians.
You obviously don’t live in Southern California. If you did, you’ve known your statement is false.
Sorry for knowing what is good and worth our money. We do not waste our money on garbage.
Now you tell me, it’s April 23rd,a little late, you think.
The article was written in April 22nd. End of the month it means end of April.
Says, “The nationwide campaign began in March and runs until the end of the month.” Do you mean May? Otherwise it is old news.
typical for around here.