Customers who purchase a new C8 Corvette Z06, GMC Hummer EV, or Cadillac Escalade-V will be required to own their vehicle for at least six month in order to transfer existing warranties to a new buyer, regardless of whether that new buyer is a private party or a dealership.
For those readers who may have missed it, GM Authority reported in July that The General would limit warranty transfers for the C8 Corvette Z06, GMC Hummer EV, and Cadillac Escalade-V if owners sold their new vehicle within 12 months of ownership. The move is intended to prevent these high-demand vehicles from being quickly resold for profit, a practice known as “flipping,” wherein resellers offer popular models at a greatly inflated price in order to take advantage of high consumer demand.
The practice of flipping high-demand vehicles is said to negatively impact GM’s customer experience and related GM brands. In addition to limiting the transfer of warranties, GM also says that customers who engage in the practice will be prevented from placing future sold orders or reservations for other high-demand vehicles. GM is also offering C8 Corvette Z06 customers 500,000 My Chevrolet Rewards points, a $5,000 value, for those customer who retain ownership for the required time period. The points are redeemable for things like GM Financial Payments, Chevrolet accessories, and more.
GM later lowered the required ownership period for the C8 Corvette Z06, GMC Hummer EV, and Cadillac Escalade-V from 12 months to 6 months.
While the required ownership period is clearly applicable to those customers who choose to resell to a private party, GM did not originally stipulate whether the same requirement would be applied to those customers that resell to a dealership, possibly because the customer simply doesn’t like the vehicle they purchased.
As such, GM Authority inquired about this important detail, to which a GM spokesperson replied that the required six-month ownership policy is applicable across the board without exception, including for those customers who sell their vehicle back to the dealer.
Going forward, it’ll certainly be interesting to see how this policy affects incidences of flipping for these three high-demand vehicles.