GM says *#% the Flippers

[teamzr1]

Last week I posted about GM giving buyers $5,000 to be used for GM stuff, IF they keep their Corvette at least 1 year

I mentioned a RUMOR GM was going to stick it to the flippers by limiting GM warranty, and now it is GM law :

Dear GM Dealership Team,

We are continuing to build momentum as we head into the second half of the year and have started shipments of several of our high demand and limited production products.

This letter serves as a follow-up to my communication from January of this year, where we reiterated your contractual requirements and our policies on selling new vehicles for resale.

When vehicles are quickly resold,
particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged.

As a result, on certain high demand enthusiast products, we are limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations for certain high demand models (as identified by GM) if the vehicle is resold within the first 12 months of ownership.

These changes are being implemented to ensure an exemplary customer experience, to ensure our brands remain strong, and to help prioritize ownership by brand enthusiasts and loyal customers.

These changes will not impact product recalls in any way.

Currently, the products impacted by these changes include the following:

23MY Cadillac Escalade-V, Chevrolet Corvette Z06, and GMC HUMMER EV (SUT and SUV).

Certain warranties will not be transferrable if the original owner resells the vehicle within one year of delivery.

In the coming days, you will receive a message from your respective brands that will outline full details of the warranties and the customer acknowledgement requirements to implement this new process.

Thank you in advance for continuing to do your part in ensuring our customers have great experiences when purchasing these truly special products.

If you have any questions or comments, please reach out to your Zone Manager.

Regards,

Steve Carlisle

President GM North America

 

[teamzr1]

GM adds meat to this and includes dealers

General Motors is initiating a new program to stop its hottest models from getting flipped for sky-high prices.

In-demand, low-volume vehicles like the GMC Hummer EV have been getting resold for astonishing amounts as supply comes nowhere near satisfying demand.
The initial Hummer EV model available this year has a starting price of $112,595, but several barely driven examples have been auctioned for over $250,000, with one commanding $324,500 at a recent event.

The automaker will soon be launching the high-performance $106,395 Corvette Z06 and $149,990 Cadillac Escalade-V and wants to get out front of the issue.
GM North America President Steve Carlisle has sent a letter to dealers informing them that the transfer of certain warranties will be voided if the vehicles are resold by the buyer within 12 months of delivery.

"When vehicles are quickly resold, particularly by unauthorized dealers or other resellers that do not adhere to GM’s standards, the customer experience suffers and GM’s brands are damaged," the letter says.

Carlisle adds that dealers will also be restricted from placing orders and reservations on "certain high demand models" in the future.

Due to the patchwork of state dealer franchise laws, legacy automakers are largely prevented from mandating how much dealers charge for their products,
while new brands like Tesla that sell their vehicles directly are entirely in control of pricing.

However, GM's franchise agreements do include general "best interest" provisions.

A GM spokesman stated that the bumper-to-bumper, powertrain/electric vehicle propulsion, sheet metal, tire and accessory coverage’s will be voided on all three models, but clarified that the Hummer EVs battery warranty will remain intact.

GM will also continue to cover any required recall work on all the vehicles.

 

[teamzr1]

Sign when buyng

Posted by Scott Wood of GM
If their customer does not keep their Z06 for 12 months:

You will be ineligible to place vehicle reservations or place a sold order with a dealer for certain high demand models (as identified by GM), including but not limited to future Corvette Z06.
The Bumper-To-Power, Powertrain, Sheet Metal, Tire and Accessory Coverage under GM’s New Vehicle Limited Warranty will be voided.
They will not be eligible to receive the exclusive Z06 award of 500,000 My Chevrolet Rewards points (a $5,000 value).

Dealers will need to have all 2023 Corvette Z06 customers sign the attached acknowledgement form at the time of delivery and make sure they understand what will happen if they do not retain the vehicle for the required 12 months. This document should be kept in the deal jacket and made available to GM upon request.

We’re hopeful that these changes will benefit the customer experience and keep our brand strong.

Thanks

 

[FIVE RED]

It's taken GM a while but finally done something about this, should put an end to flipping for a fat profit.
Thanks for sharing.

 

[CaptainK]

I very much applaud GM for fighting back against the flippers. But what happens if you are a genuine buyer, like the sound of X car from the reviews, buy it and then after a few weeks find you really don't like the car? Or something life changing happens like a baby can be brewed in 9 months, and you need a more practical car? Or you find your new EV lifestyle isn't for you and doesn't do what you want it to do. Etc, etc. Then you are stuck with an expensive car for the rest of the 12 months before you can get rid.

 

[Nassau65]

I’ve got nothing against “flipping” if your willing to put your money down on the hope to make a profit, so be it. My friend bought a new C8 convertible as a third car. Used it very little, in fact hardly at all due to work/travel commitments. She lives in Flagler beach FL, works in Dallas TX four days a week. She decided to sell her C8. Yes the profit was a factor in her thinking, but in the end it was just sitting about.

 

[Nassau65]

GM are just pissed off because some people are making big money off their products, and they don’t like it. They probably think that we make it, hell we should be making that profit.

 

[Nassau65]

Not sure if this practice is still in force, but GM execs kept their cars for 13 weeks, then they got another one.