Model wearing cape, retreats (5)
I believe the answer is:
nests
'retreats' is the definition.
(nest is a kind of retreat)
'model wearing cape' is the wordplay.
'model' becomes 't' (Ford Model T car).
'wearing' indicates putting letters inside.
'cape' becomes 'ness' ('ness' can be a synonym of 'cape').
't' placed into 'ness' is 'NESTS'.
(Other definitions for nests that I've seen before include "Structures for egg-laying" , "Lodges" , "Cosy secluded retreats" , "Eyries" , "Bird structures" .)