GM Will Cancel Your Warranty if You Buy a Corvette Z06 From a Flipper

Automakers are doing everything they can to try and stop rampant flipping and reselling of high-demand models, and now GM has came up with an idea that might actually work.

In a letter sent to dealers signed by Steve Carlisle, president of GM North America, the automaker says “certain warranties will not be transferrable” on Corvette Z06, Escalade-V, or GMC Hummer EV models that are re-sold less than one year after original sale.

GM is already offering $5000 to owners who keep their Z06 for a year. Now, they are piling on to that by warning potential buyers that if you buy a Z06 from someone who haven’t owned it for a year, the car warranty won’t transfer to you.

For Corvette Z06 and Escalade-V, if ownership of the vehicle is transferred from the original owner within the first 12 months of delivery, the Bumper-to-Bumper, Powertrain, Sheet Metal, Tire and Accessory coverages will be voided.

For HUMMER EV, if ownership of the vehicle is transferred from the original owner within the first 12 months of delivery, the Bumper-to-Bumper, Electric Vehicle Propulsion, Sheet Metal, Tire and Accessory coverages under GM’s New Vehicle Limited Warranty will be voided. The Battery Warranty Coverage will not be affected for HUMMER EV.

In addition to this, The person who attempts to flip one of these high demand vehicles will be prohibited from placing future orders for certain high demand products (identified by GM). So there is significant risk to the flipper’s future ability to buy, in addition to providing an incentive for a customer to buy new and receive a warranty rather than buy from a flipper.

This is the most drastic action I’ve seen yet from an automaker. Time will tell if this new policy will stop people from buying hot GM models at a markup on the private market.

Source: jhonchow

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