A 2021 GMC Yukon Denali customer in Edmonton, Canada recently discovered a $1 lien on his fully paid-off SUV after trying to sell it.
Per a recent report from Global News, Edmonton resident Harvey Minhas purchased his 2021 GMC Yukon Denali in October, but later accepted a new job offer in Toronto, prompting him to sell the large SUV, as he felt as though it wouldn’t be a great fit for city driving. However, Minhas was then informed by a potential buyer that there was a lien placed on the vehicle, preventing him from selling it.
Although Minhas’s GMC Yukon Denali was fully paid off, the dealer had placed a second lien on the SUV for $1. After checking over the fine print, he discovered a clause stipulating that the SUV could not be sold, transferred in ownership, or exported from Canada for 12 months after purchase.
Frustrated, Minhas returned to the dealer for an explanation.
“They said even if you do sell it, it might end up in the hands of an exporter and so we don’t want this vehicle crossing the border,” Minhas said, per Global News.
According to the president of the Motor Dealers’ Association of Alberta, Gerald Wood, the clause is typically applied to extremely high-end vehicles, but is considered “a new methodology” when applied to a vehicle like the GMC Yukon Denali. However, the move makes more sense in the current auto market.
“It’s really done to make sure that we can protect the pricing levels in Canada, so that Americans don’t come to Canada to purchase the vehicle,” Wood said.
However, the move leaves Minhas stuck in an uncomfortable position, at least for the next eight months until he can sell his GMC Yukon.
“Everyone’s financial situation or situation in general can change at any time and mine did and I don’t want anyone else to go through the same thing I did,” Minhas said.
As a reminder, the 2021 GMC Yukon introduces an all-new fifth generation for the nameplate, offering three engine options, including the atmospheric 5.3L V8 L84 gasoline engine, atmospheric 6.2L V8 L87 gasoline engine, and 3.0L I6 LM2 turbodiesel Duramax. Under the body panels is the GM T1 platform, with production taking place at the GM Arlington plant in Texas.
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Comments
$1!?! WTF!?! I feel sorry for the owner…
No need to feel sorry for him.
He said he was unaware of some of the restrictions dealers have put in place to avoid people buying these vehicles to flip and make a huge profit.
In a very short period of time he bought at least 3 high end vehicles 2 of which where already resold and ended up in the states by the time this article was posted. He is on the exporter list GM circulates twice relating to the sale of 2 of these vehicles. No GM dealer in Canada could sell him another vehicle at this point.
This is such a problem here that I guarantee he was made well aware of the conditions at each and every sale. When you can’t find the vehicle you want locally and see them being resold at hugely inflated prices elsewhere thank people like him.
People can do what they want they bought it period. Some sucker dealer doesn’t like that they should close then. If you wanna control what people can buy or sell then leave this isn’t the right country for you.
You are missing the point. At the time of purchase he signed off knowing he had to hold the vehicle for a certain amount of time. He didn’t, he flipped 2 into the states right after buying them then went to the press hoping to get the dealer to remove the lien on the 3rd one when he couldn’t sell that one as well.
The reporter should have done his due diligence to get more of the story.
That’s fine, a business can generally choose who to sell to as long as it’s not based on race, religion, etc. Normally businesses simply refuse to sell to an individual or entity.
What’s surprising is the impose a condition that holds after a straight sale. And second, it’s done via a lien, which in most cases can be satisfied simply by paying $1. This is under Canadian laws of course, but I think he’d have a case if he hired a lawyer.
Actually that’s not accurate. We dealers are prohibited from selling new vehicles to known exporters per GM. They maintain a list of such individuals, which I understand this guy was on, and we can lose our franchise if there is a willful violation. Buying a car isn’t like buying a pizza.
That’s correct he was on the exporter list, he also used to work in sales at a local dealer.
@ Cole
You guys have any sedans on your lot?
Sedans as in Malibus? I think I sold my last new one last week. I do have a few coming in. Send me an email if you want more info: cole(dot)gagliano(at)genesischevy.com.
Thanks for the reply, I’ll email you tomorrow morning. Yes sorry I meant the malibus and sparks. Unless they are already done making the sparks?
canada is a free country. the dealer is free to make any legal stipulation it wants. freedom goes both ways for consumers and businseses.
It shouldn’t matter if the vehicle does get exported. To GM the vehicle was reported to the first consumer. GM does have dealer regulations in our dealer agreement not to export vehicles but they can’t control that on what is now considered a used car. Dealers from the US can’t sell new into Canada and I’m sure it’s the same there. What happened here doesn’t make any sense.
I don’t understand while GM and some GM dealers in Canada and the United States want to take advantage of people during these times that we are ALL struggling. Not only is GM allowing this to happen but there are some other manufacturers that are allowing their dealers to take advantage of consumers. NO manufacturer should ever allow a dealer to charge OVER MSRP for vehicles, PERIOD. If this individual is purchasing vehicles under MSRP and then reselling in less than a year, YES that is WRONG and that individual needs to be held accountable. With that said, there is NO Dealer should ever be allowed to sell any vehicle over MSRP unless it’s 1 of less than a few hundred that will ever be made, EVER ! ! ! What is this world coming to? Taking advantage of people during these times is NOT a good thing and those that take advantage of people during these times should and NEED to be held accountable.
Full disclosure, I DON’T sell over MSRP and never will.
Counterpoint: The only way it is fair for a manufacturer to mandate that a dealer never sell over MSRP is to also mandate that they never sell under MSRP when conditions return to normal. It’s easy to forget, but the manufacturer’s would lean on us to blow out their over-production at little-to-no profit a mere 1-2 years ago. Again, I won’t sell over MSRP, but I also have the advantage of being a larger store that will survive the shortage. Smaller stores are facing the reality of going out of business, and if they have a new Tahoe that is going for $10k over MSRP on the used market, they aren’t obligated to give that away so that a serial-flipper like this guy can make all that money while they close their doors and all their employees become jobless.
Of course on the flip side, should a dealer be alllowed to sell a vehicle for less than MSRP? As a dealer over the past 40 years, the current market is unlike anything we have experienced. I wasn’t alive, but I would think the market somewhat resembles what happened after WWII. Currently I have 4 new vehicles on the lot…I should have well over a hundred. Our survival and continued retention of our employees requires a certain level of gross profit. Wouldn’t be in business if we couldn’t charge whatever the market allows.
What happened to “journalists” using the word allegedly? This story smells like a 10 day old fish.
Still waiting for my chrome bug reflector. It is been 2 years. Does anyone know why
This isn’t selling over Msrp this is stopping high ticket items getting exported. The Dealership is in the right. This customer is also an exporter who knew exactly what he was doing however this Dealership was able to stop him. He has done this twice already.
Where in this story does it state that he has done the his twice already?
it doesn’t. Gm circulates a list of customers banned for exporting. He appears twice.
To the court. The attorneys will make the most $$$ on this dispute.
There has never been a lien that can’t paid off immediately upon notice. If he can’t sell it, there may be a clause elsewhere preventing the sale. Ford is notorious for this with their GT’s. Otherwise there is something is very wrong with this story!!!!!
Wow when gas goes to 6-7$ US the value if that truck used will drop 30k. Right now a 50k mile 4 year old Denali is 50k, that much newer one would be close 60.
I have a2016 chevy colorado LT. I bought my vehicle at Millenium Chevy in Hempstead Long Island. I would like to give them a shout out. They have been wonderful.
Frank: That’s nice. Good on you. Too much bashing and badmouthing these days.
I personally think it’s bs. He bought it and paid for it. It is his to do what he wants. I asked a dealer to put me on the list for a z06 corvette and they did. But then also told me that they would not be selling it for sticker price and it could be 20k to 40k over sticker. Now to me that is bad business!
Matt: I went through the same thing you went through on an outrageous premium over MSRP about 20 years ago on a new Harley Road King. The dealer quoted me a $3K premium over factory list and asked for a deposit. I was stunned. He said he could sell every Road King delivered to his store at that premium. I walked and bought a new Road King from a dealer in Wyoming at list. It’s a crazy world out there.
It seems odd to me that both the dealer and gm are allowed to make a profit on a vehicle but once it has been sold for MSRP the vehicle owner is not allowed to resell it to make a profit, on a vehicle that he bought and paid for. As for exporting a vehicle to make a profit, why is Chevrolet allowed to export Corvettes into Canada and make a profit on everyone of these exported vehicles at MSRP? That’s not to mention the fact that the dealer also made a profit on the imported Corvette and in some cases the very same dealer is allowed by gm to sell the imported vehicle at an exaggerated or enhanced profit over MSRP and the dealer is exonerated from any wrong doing and this practice is condoned by gm.
Selling after you pay MSRP is fine. Exporting to another country to resell is not, which this guy was doing and had done twice before. This isn’t new, whatever the reason is, GM dealers have been prohibited from knowingly selling to exporters forever.
Shoulda` read the fine print.
As someone who works for a dealer I do understand the reason they did it. I can tell you it is not a good feeling when you sell a customer for example a Hellcat Durango for 82k only to see it for sell in a couple weeks for 109k
Just sell it back to the dealer. He will lose some value but can use thr money to get a different vehicle, such as a Ford hybrid.