GM is changing the way in which dealers can report vehicle sales, preventing a vehicle from being reported as sold prior to its delivery.
According to a recent report from Automotive News, which cites a memo from GM to dealers, GM will no longer allow dealers to report a vehicle as sold until after the customer takes possession of said vehicle. The change comes amid a bevy of supply chain issues and delays that have extended delivery times considerably.
Previously, GM dealers would report a vehicle as sold based on whatever law was stipulated by the state in which the dealer was located. As such, some dealers would “pre-report” a vehicle as sold in order to show a higher turn rate as compared to reporting the sale on delivery.
Prior to the COVID-19 pandemic, this pre-reporting strategy relied on the delivery of a vehicle just a few weeks after it was invoiced and left the facility where it was produced. Now, however, vehicles are arriving months after being produced, sometimes longer. As such, a vehicle reported as a sale prior to delivery could be be several payments deep and carry expired trials for OnStar and SiriusXM before it even gets into the hands of the customer.
The delays are reportedly not only related to microchip-intensive features, either, but for a range of items, including tires, wiring harnesses, or headlights.
The new strategy not only puts all GM dealers on the same level with regard to turn rate reporting and inventory, but also benefits the customer, who is often left wondering where their vehicle is. As GM Authority reported previously, GM vehicle tracking is a major problem, and often leaves customers in the dark as to when they will finally receive their vehicle, an issue exacerbated by the COVID-19 pandemic and related supply chain issues.
According to the Automotive News report, an unspecified dealer in Texas was reporting sales prior to delivery, but received an “ungodly” number of customer complaints as a result.