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Z06 Warranty Cancelled If Sold Within 1 Year & 2nd, Bigger Hammer Too
Today, 11:19 AM
Also BIGGER HAMMER to many also, this quote from within the document.
First a major thanks to the birdie who shared this with me, and thus for us all. THANK YOU!
“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.”
This information is from GM’s Executive Vice President & President of North American Operations President Steve Carlisle to Chevy dealers.
Originally posted by SteveCarlisle
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
Only affects exporters and the dealers who (inadvertently) purposely sold to said exporters. Wish it applied to Joe "ShitbagFlipper" McSchmo but alas. Dealers who sell to exporters or can be traced back to a car that was exported will likely lose some of their allocations. It may also affect dealers who buy from within to keep it away from a customer only to relist something as "used" with the markup.
VIN tracking is pretty easy to do, so GM shouldn't have any problem enforcing this by VIN banning cars sold within 12mo. It also looks like a customer won't be able to buy multiple models from multiple dealerships. Something Porche and others sometimes enforce.
This might drive some flippers off of waitlists, like the big dealers have, and get more cars into customer hands - at least for those that use lists.
This may put a little kink in flipper's plans, however they invest $120,000 to purchase a C8 Z06, keep it a year putting little (if any) mileage on it and then sell it at a $50k>$75k profit. Not a bad ROI for a one year investment.
Why do you say that? Seems to me that it will definitely affect flippers because the 2nd owner won't get the warranty, which I would think would substantially reduce the price someone is willing to pay for it. Paying top dollar for a 1st year Z06 with basically no warranty seems like something that many people would not be okay with, which should reduce demand for flipped cars, no?
Originally Posted by Amoreloba
Only affects exporters and the dealers who (inadvertently) purposely sold to said exporters. Wish it applied to Joe "ShitbagFlipper" McSchmo but alas.
Why do you say that? Seems to me that it will definitely affect flippers because the 2nd owner won't get the warranty, which I would think would substantially reduce the price someone is willing to pay for it. Paying top dollar for a 1st year Z06 with basically no warranty seems like something that many people would not be okay with, which should reduce demand for flipped cars, no?
Because this part -
"Particularly by unauthorized dealers or other resellers that do not adhere to gm's standards"
Selling a car back to an authorized GM dealer wouldn't trigger this methinks. And how is an authorized dealership to sell a vehicle to somebody without warranty? They would have to legally disclose that and nobody wants to buy that.
But don't almost all flippers sell to someone that is NOT an authorized dealer? So assuming your reading is correct that we can re-sell to an authorized dealer, that still hurts flippers, because their pool of buyers is then limited to GM dealers, no? Still hits hard at demand and because the dealer will offer less than a private buyer it limits the flipping upside, I think.
Originally Posted by Amoreloba
Because this part -
"Particularly by unauthorized dealers or other resellers that do not adhere to gm's standards"
Selling a car back to an authorized GM dealer wouldn't trigger this methinks. And how is an authorized dealership to sell a vehicle to somebody without warranty? They would have to legally disclose that and nobody wants to buy that.
"Particularly by unauthorized dealers or other resellers that do not adhere to gm's standards"
Selling a car back to an authorized GM dealer wouldn't trigger this methinks. And how is an authorized dealership to sell a vehicle to somebody without warranty? They would have to legally disclose that and nobody wants to buy that.
They just said "particularly by" and were talking about how non gm dealerships may not be able to provide the same "standards" as a gm dealership.
The also included "other resellers" which includes all of the public....us. its their justification for not allowing flipping yet doing nothing about dealerships adding crazy ADMs
in other words, a gm dealership can charge 75k dollar ADM but if anyone sells the car they legally purchased within a year and they want to sell it for what they paid the new owner gets no warranty.
If this actually comes to fruition, there are certain parts of a warranty that can’t be excluded like Federal Emissions. As to the rest, that will be up to the legal folks to decide but one could speculate that if GM chooses to limit their warranty to only the first buyer, I’m not sure why they can’t do it. 🤷🏻♂️
Let’s see how this shakes out over the next year or so.
If this actually comes to fruition, there are certain parts of a warranty that can’t be excluded like Federal Emissions. As to the rest, that will be up to the legal folks to decide but one could speculate that if GM chooses to limit there warranty to only the first buyer, I’m not sure why they can’t do it. 🤷🏻♂️
Let’s see how this shakes out over the next year or so.
You can bet one of those papers they ask you to sign in finance department will cover their as*.
St. Jude Donor '12-'13-'14-'15-'16-'17-'18-'19-'20-'21
Originally Posted by Kevin A Jones
This may put a little kink in flipper's plans, however they invest $120,000 to purchase a C8 Z06, keep it a year putting little (if any) mileage on it and then sell it at a $50k>$75k profit. Not a bad ROI for a one year investment.
I suspect that most people who flip don’t want to wait a year to flip the car. There is no guarantee that they will get a premium price for the car in a year. There might be some who will do this, but flippers tend to look for a quick profit, not sitting on a car they invested $120k to $160k in for a year.
07-29-2022, 03:44 PM
Z06 Warranty Cancelled If Sold Within 1 Year & 2nd, Bigger Hammer Too
Well said