GM WILL VOID WARRANTIES FOR HIGH DEMAND VEHICLES IF FLIPPED WITHIN THE FIRST YEAR

[Summitric]

GM WILL VOID WARRANTIES FOR HIGH DEMAND VEHICLES IF FLIPPED WITHIN THE FIRST YEAR​

The C8 Z06, Hummer EV, and Cadillac Escalade-V Are All Part Of This New Arrangement​

by Zac M.August 1, 2022, 5:31 pm

Image copyright Manoli Katakis, Muscle Cars & Trucks.
Last week, General Motors took a step to address the reselling of the C8 Corvette Z06 by offering a $5,000 reward in credits to anyone who keeps the car for an entire year. We didn’t think that would be very effective in deterring sellers, but now a letter sent to dealerships may play a significant part in the fight against flippers. According to a recent dealer notice, The General seeks to accomplish this by restricting the transferability of warranties within the first 12 months of ownership and barring the seller from placing reservations on specific high-demand models in the future.

Corvette Z06, Cadillac Escalade-V, Hummer EV All Affected​

A letter obtained by Corvette Blogger shows that GM North America president Steve Carlisle mentions that the new policy applies to all the new C8 Corvette Z06 as well as both body style variations of the Hummer EV and the recently-debuted Cadillac Escalade-V. It’s good to see that GM is cracking down on the combination of dealer markups and resellers to save the customer experience and GM brand integrity. Furthermore, Carlisle mentioned that “these changes will not impact product recalls in any way.” Another representative from General Motors added that the company hopes that this will prioritize ownership of these vehicles to loyal customers and brand enthusiasts, as opposed to people that wish to turn a significant profit.

With this new step and the rewards program for the Z06, GM has taken one of the most aggressive steps to curtail the flipping of low-volume, high-demand cars. In addition, it shows that the company has a clear focus on combating the secondary market for the first year of some of the most exciting vehicles for sale today.
This action could theoretically mark the beginning of bringing things back to normalcy, causing dealer markups to come down and restore what was once an exciting experience, the ordering process for these kinds of cars.

 

[papajake]

So owning a gm product is not really owning it after you buy it you are not the real owner what a bunch of f$5king crooks

 

[Cyle]

So owning a gm product is not really owning it after you buy it you are not the real owner what a bunch of f$5king crooks

That's not what they are doing at all. They are actually trying to protect real buyers from paying insane prices.

I get the side of it's my vehicle I bought it I can do what I want, but trying to stop people buying them only to flip for profit is not a bad thing IMO.

However like anything else, it's not difficult for people to find a way around this.

 

[Lightningmike]

Aren't the prices stupidly insane from the dealer anyway??

 

[Frosty19]

This has been a thing forever with more prestigious car brands.
These vehicles are low production and I can understand both sides.

Don't like it, don't buy one. If you can't keep a vehicle like one of these for one year maybe you didn't really want it in the first place
They're doing more for inflation than the liberals

 

[teeroy]

My pop had to buy a new Yukon after writing his off when he hit a moose last winter, only place he could find a new one was the GM dealer in Cold Lake. He had to sign a separate contract agreeing not to sell it for one year after date of purchase.

 

[oler1234]

I’d walk out…

People run into financial troubles and are required to sell.

 

[snoflake]

In the event you have to sel The dealer will buy it back. The thing that is BS is some dealers are making you take the the paint protections, undercoating, scotch garding etc and it’s between 4g - 6g. And that is a crime in my mind. They are saying they need to keep there service dept working.

 

[bobsledder]

I’d walk out…

People run into financial troubles and are required to sell.

Exactly. None of their business what you do with it. GM products are junk. No wonder people dump em shortly after getting one

 

[ABMax24]

If people are buying a Corvette Z06 and are worried about financial difficulties forcing a sale within a year, then maybe those people shouldn't be buying one on the first place?

This policy does not apply to vehicle models like SUVs or Pickups.

 

[oler1234]

In the event you have to sel The dealer will buy it back. The thing that is BS is some dealers are making you take the the paint protections, undercoating, scotch garding etc and it’s between 4g - 6g. And that is a crime in my mind. They are saying they need to keep there service dept working.

I believe that’s called racketeering… which would be illegal

 

[Caper11]

This is NOT new, just rare to see on low end vehicles, it’s normally on customer ordered vehicles that the customer paid MRSP and under.

All manufacturers IMO should be cracking down on the dealer inflating the MRSP.

The Z06 vette is a ways out before customers can get their orders.


Sent from my iPhone using Tapatalk

 

[bjd68]

If u follow street speed, he posted on his youtube channel the call from a gm dealer about the new ZO6 vette, that if willing to pay 100 k over MSRP he could be put on the front of the list. Dirty dealers trying to make a quick buck but Im sure some people will do it.

 

[Bnorth]

If they want to curb flipping maybe they should crack down on their dealers selling over MSRP and in the cases of some of these vehicles way over MSRP. Don't punish the consumer for something your own dealers are complicit in creating.

 

[kenvb]

the last 4 yrs,my neighbor pays cash for a F350 super duty king ranch diesal..in 6 months he sells to a US buyer for what he paid except is US dollars. only issue is buyer doesnt want those spray in liners or scratches in box.so my friend pulls a trailer when he hauls anything.i drove all these to get kms on them,,he works out of town with a company truck.im not a Newer than 86 Ford Fan,,but what the hell..there new.

 

[Cheers]

Voiding the warranty doesn't bother the person who is flipping cars.
It only punishes owner #2, #3, etc.
As the owner of 2 pickups under a year old, I wonder if they have any silly restrictions.