The certified pre-owned segment allows dealers and automakers to offer more options to consumer — it’s essentially an extra model in your lineup that can bring in customers who might not be able to afford a luxury model, says Mark Templin of Lexus. 

But there’s something more important at play here, he said: protection of residual values.

Templin — who is the managing officer at Toyota Motor Corp., and executive vice president of Lexus International — was speaking alongside Cadillac president and General Motors executive vice president Johan de Nysschen at the NADA/J.D. Power Automotive Forum in New York on Tuesday.

De Nysschen noted that certified “has to be part of a well-rounded strategy” for a luxury brand like his.  

He said Cadillac is aiming to further engage dealers in CPO and identified another challenge to which others might be able to relate.

“One of the things that keeps us busy is that a lot of our Cadillac business gets fragmented (into) the very large General Motors stable of dealers,” de Nysschen said. 

He wants to find a way to channel and manage that process in a concentrated and efficient fashion; one example noted by the moderator was that instead of a certified Cadillac being at a Chevrolet store, it’s at a Cadillac store.