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.
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Comments
maybe GM should consider building more vehicles to stop this flipping issue…..have another factory building the big SUV’s, another factory building Corvette’s…….oh, I forgot…supply chain issues, War in Ukraine, Covid, can’t find people to work….more excuses and less sales….how about getting competent people in supply positions and get your current office staff back to work….GM is so pathetic ….no instead GM just passes rules to limit sales
It won’t stop shipping overseas because in most countries the warranty is voided as soon as it touches the ground
Lol
Gm is so worried about an owner selling his or car to fast to make a inflated profit, but what do they say about all these dealers selling c7 & c8 Z06’s & c8 Stingrays $30k-$60k over MSRP. Wtf! How about they start regulating all these dealers that are crooks. Ripping people off their hard earn money. If dealer wouldn’t jack up the price so high, then many wouldn’t try to sale or refinance. Look what Ford said to it’s dealers about marking up the price of their car.
That won’t change a thing they’re doing that already keeping them longer than 6 months and still making profits above and beyond Norm so I think it’s more of a gesture by General Motors
They want to stop the buyer from selling for a profit, but GM will not do anything about dealer mark up ! Go figure the hypocrisy on display here.
So let me get this straight, GM doesn’t want private citizens to capitalize on supply chain issues, but for their own greed, they over inflate the new cost of the Z06 to begin with! Then backtrack on their comment to withhold allocation for any dealer that sells over MSRP to then say, “we really can’t get involved with what dealers do”! So dealers can take advantage and charge 100k over MSRP! Example, I spent $106,000 for my 2016 Z06, 3LZ with Z07 package. Full track car every option! That same spec car for 2023 $178,000 MSRP without dealer fair market value adjustment added! GM, its not the flippers ruining your reputation, it’s you and your crooked dealers!
GM can *absolutely* influence their franchised dealerships’ rotten ADM markups: make it policy to limit crooked stores’ future allocations of the most profitable units–no financial difference to GM–these vehicles would simply go to relatively honest dealers. Simple and easy peasy. Mary Barry can wear all the macho leather outfits that she likes, but that does not change her unbelievably weak response to greedy stores. She hurts GM and all of its former customers/buyers.
If I wait almost 2 years for a Corvette, I have a right to sell it to whomever I want to at any time
Class action suit would win it
OH…. so someone buying a vehicle and flipping it creates a bad customer experience, but dealers adding egregious market adjustments don’t. Said another way… it’s OK for a dealer to profit from “Market Conditions”, Supply and Demand – and such – but not a private buyer ? Talk about a double standard.
Dealers have a huge government lobby that ties GM’s hands with tons of state laws. Flippers don’t.
Just tried to buy a 2023 Corvette Convertible, 70th Anniversary Option, Black metallic, Front lift option and all dealers wanted 20 to 40 k over MSRP!! I told the Sales Mgrs to call me when they were ready to sell it at MSRP. I then asked if they had received the letter from GM concerning pricing Corvettes over MSRP/ or adding market adjustments? All (4 different dealers in TEXAS, Kansas, Ohio and Florida) said that was not their problem/concern but was the owners. I was nice when asking and they were nice when responding.
contact MacMaulkins only charge $474.00 admin. fee over msrp new car 10 months shipped to local dealership for $1000 set up fee
Dealers shouldn’t be allowed to sell over MSRP
If continues then don’t supply the dealership
with cars
As for the people that pay over MSRP need to have their head examined
If they would stop then dealership would sell at the MSRP
Maybe they should be less concerned about the general public and more concerned over the dealerships?
DEALERS HAVE THE RIGHT TO SELL OVER MSRP, BUT THERE IS MANY DEALERS AROUND THAT WILL SELL AT MSRP.
THE CORVETTE FORUM HAS A LONG LIST OF THEM.
where, l looked? I tried quite a few dealerships to buy one in their inventory and all I got was MSRP plus 20-40k .
I work for a dealer that has sold all Corvettes at MSRP. The problem is customers coming in running their mouth about much they have made or can make. ZO6’s won’t be going for list. He learned his lesson.
I don’t get it. Maybe I’m naïve. I give GM credit for trying to police this situation. GM has always made great cars like the ones listed here, but the demand is so high for these vehicles, yet instead of over charging and having margins like Porsche, BMW, etc, they try to keep it affordable for the middle class like me. I can’t believe people are complaining?
you don’t get it? GM is keeping the price reasonable so the middle class can afford it? Are you for real? I just told you that my Z06 3LZ with Z-07 package cost me 106K in 2016, now that same car is 178K before taxes so your 200K+ out the door only if the Dealer charges you MSRP without their special mark-up on top!!!! Your telling me that the new Z-06 is now 180K vehicle for the middle class. You could have bought two Z-06’s for that much money 2 years ago! No, GM is testing the market place for a massive price increase for the Vett making it harder for the middle class to get unless you want a baseline Stingray. The reason I’m now driving an Aston Martin DBS GT supercar is because GM is price gouging their lifelong Corvette customers like me who has had a vett since I was in my early 20’s. Now 53. That tells you how long I have been a loyal Vett owner. I also have a fleet of GM service vehicles. I’m not complaining, GM wants to charge supercar money for a vett, I moved on to a true hand built Super Car with V12 Twin Turbo 715HP DBS Superleggera. And when you talk about supply and demand, there is only 278 of these vehicles built in the world. How many vetts will come off the production line for that inflated price?
I agree 100% with Gm testing the marketplace for a massive price increase. I have owned many vehicles over the years but never a Corvette. I became very interested when they announced the Z06 and placed a deposit on one before pricing came out. The dealership estimated a fully loaded Z06 convertible would be around 130k MSRP which I was fine with. The last time I checked in with the dealer he told me due to supply issues, and GM’s focus on EVs I most likely would not be able to get the Z06 until 2024 and expect the price on my build to be $175k before taxes etc. so as you stated you looking at 200k+ out the door. Similiar to you, when I ordered my Aston Martin 100 year anniversary DB9 they only made 100 cars, 35 being coupes. I have number 11 of 35. The car was purchased at MSRP, with no markups or delays. GM has a lot of issues to deal with regarding supply chain and parts issues but I blame that on poor planning on their part. They are also being pressured by our government to build EV’s with the goal of eliminating ICE by 2035. I personally believe the Z06 as an ICE vehicle is going to be very limited due to the EV push. I don’t see an ICE ZO6 being built passed 2024, only hybrid then fully battery powered. I am keeping my name on the list but to be honest I doubt I will ever see a Z06 in my garage. I will get a lot of thumbs down on this because there are a lot of gullible people out there that don’t believe GM is going to stop making ICE vehicles. The only way that is going to happen is if we vote the democrats out in Nov and 2024 so we can change their energy policies and get back to being energy independent again. If Biden really cared about the environment, to set an example, he should sell or trade his Vette in for an EV.
You get a big thumbs up from me! Going Green will mean going Broke for GM! The Green New HOAX! I have a GM fleet account for the service vehicles I run and I can tell you my fleet manager has told me they fully intend on going to all EV Vehicles! Don’t know where my service techs and installers are going to PLUG in during the day! I have already started transitioning to another manufacture due to the constraints and lack of GM Trucks and service vans. My last vett was the fastest production vett every made until the 2019 ZR1 beat it. I fully intended on ordering the 2023 Z06 with Z07 track package until GM and their dealers started their price gouging. I can tell you, I absolutely love my DBS Superleggera every time I drive it. Wicked Fast and lives up to the hype. Didn’t pay over MSRP either! Never have and never will!
Thanks for the thumbs up. My dealer told me he would sell it at MSRP so staying on the list, but as I mentioned with everything going on I doubt I will ever get to place an order. The Vette was the best-valued-priced sports car aimed at the middle class. When pricing for a Z06, E-Ray and Zora start hitting 175k+ it’s not the middle-class sports car any longer, and I think GM will lose market share and its loyal customers. As far as my Aston, my DB9 is not my daily driver, but the drive and quality workmanship on this vehicle are hands down world-class!
Maybe instead of buying stupidly expensive cars you barely use, spend some of the money your business makes to make it more functional.
No one is forced to buy one.
Sir ma’am or what or who you identify as. Do you know alot those car are overpriced as well? How much do the engine & tranny cost? How much does the paint to the car cost? Alot of these Auto makers used some of the same companies to install features in the car. So tell me how Hyundai & Kia came make cars w/high end leather, & suade seats. All the premium sound sys, big screens, heads up display, sm turbo, brembo brk, carbon flash, & Bridgestone , Michelin, & continental tires, for way less $$? So if we take away the engine from the c6, c7, c8 , zl1, escalade, Denali, ct5 V, do you believe that the car is worth $30k – $80k over a hyundai, or Kia? Hell, you can get a Hell cat, or skat pak cheaper for the same features in the car. To sum it up, all I’m saying is that you don’t have room to defend gm on pricing vs foreign cars. (BMW, & Porsche) Now they are mad bc someone sell or refinance their car to get a better deal. Kick rocks GM! When you regulate the dealer from jacking up pricing we will understand. Until then, step.
FYI middle ppl don’t avg $150k annually. Did you not know the president couldn’t get mim wages pass for $15 p/h. For over half of us mim wages is still under $9 p/h. So unless you’re at the top financial bracket of middle class corvettes aren’t made for you. That is according to the c7 gs z51, z06, zr1, c8 any model, escalade & Denali 21′-24yrs pricing. Good day! 👋🏾
Irony here:
My selling dealer emailed me with offers to buy my 2020 Colorado within 6 months of my purchase from THEM !
But they have no issue with dealerships grossly marking up their vehicles over MSRP, which negatively impacts the customer experience. Hmmmm
Simple solution. Don’t sell them. 3 year lease. You can buy them at the end of the lease, or return them. No resale option as you don’t own it.
Another way (other than lease) is to mark them up from the factory. Then if the purchaser still owns the vehicle after 6 months or whatever time period they deem, offer a pre-defined rebate somewhat equivalent to the factory markup. Dealers may still try to add ADM but demand would suffer. Win-Win for the “real” retail consumer.
Just hold off from buying
Sooner or later they’ll quit or
go bankrupt
GM should charge a $5,000 warranty transfer fee. If the vehicles are sold within the first 12 months. It’s a win win for both parties.
nice how GM comes down on the purchaser and does nothing to the dealers
I’m surprised no one has blamed our President. Inflation is up, vehicles and home purchases are a factor in the inflation rate. So all of those greedy home sellers and car dealers are to
blame for asking outrageous prices and then plenty of people willing to pay out. Greed never wins in the long run and it will come back and haunt us like higher interest rates!