GM cracks down on Corvette and Hummer flippers through warranty threats
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The last few years have been the perfect storm for high-end car flippers as chip shortages and pandemic delays have basically meant that vehicle allocations are worth their weight in gold.
Among the brands trying to discourage flipping brand new vehicles and "damaging brands" is General Motors, which is now promising to penalise speculators by cancelling warranty coverage.
🚨 GM apparently sending out emails to dealers about Corvette Z06s , Hummer EV and Escalade-Vs to help cull flipping.— Zerin Dube (@SpeedSportLife) July 29, 2022
The gist is that certain warranties of the car will NOT be transferrable if the vehicle is resold within the first 12 months of ownership. Now that's 🔥🔥🔥🔥! pic.twitter.com/6svDpVHgyw
A letter spotted on Twitter from General Motors North American president, Steve Carlisle stated that GM dealerships around America have recently started addressing these flippers.
The letter stated that “we are limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations for certain high demand models.”
If you can't be bothered decoding the PR jargon, GM is basically saying that the warranty will be cancelled for flippers, and they won't be allowed to buy any other new GM vehicles.
By the sounds of things, there are three vehicles in question here, including the new Hummer EV, the Corvette Z06, and the Caddilac Escalade V.
It'll be interesting to see the effectiveness of this plan, and hopefully we'll stop seeing online auctions sell these vehicles for double, or even triple their RRP.