General Motors is trying to put the kibosh on the unsavory practice of buying a high-demand vehicle and flipping it for a profit. So, if you just bought a GMC Hummer EV and are thinking about selling it immediately to make a few bucks, yeah, don’t do that.
According to an article in Automotive News, GM is doing two things to prevent flips: barring customers who resell certain vehicles from placing future orders and limiting the transfer of certain warranties.
All of this came from a letter from Steve Carlisle, president of GM North America, which was sent to dealers late last week.
“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,” Carlisle said in the letter. “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.”
Current vehicles on the do-not-flip list include:
GM is putting pressure not only on dealers but also consumers to ensure the fair price of its vehicles. With the last year’s massive markups due to Covid-19 supply chain shortages this is necessary and welcome.
So, what does this mean in plain language: If you try to flip a popular GM vehicle, you’ll not only void the warranty, but you’ll also be added to the “no fly” list in terms of future hot vehicle reservations. Don’t do that.
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