Just last week, GM Authority reported that a Cadillac Escalade-V owner had their warranty voided after refinancing their new performance SUV. Now, we’re here to report an update on the owner’s current situation.
Before we get to the update, let’s first recap. As reported last week, GM Authority was recently in contact with a customer who purchased a new 2023 Cadillac Escalade-V last September. The customer originally financed their SUV through GM Financial, but opted to refinance their vehicle at a lower interest rate with another institution earlier this month. Critically, no transfer of title took place.
Fast forward, and the customer recently ran into a few issues with their new Cadillac Escalade-V, including a loss of power and a “Service 4WD” message in the instrument panel. The owner decided to bring their vehicle in for service, but upon doing so, the dealer advised them that the vehicle had a warranty block on it due to non-retention.
Like the GMC Hummer EV and 2023 Corvette Z06, GM opted to place a time-specific ownership requirement on the 2023 Cadillac Escalade-V in order to retain the warranty. The requirement was put in place to prevent bad actors from quickly reselling these high-demand vehicles for a large profit, a practice known as “flipping.” However, as stated above, the 2023 Cadillac Escalade-V owner in this particular story simply refinanced their vehicle, and no transfer of warranty took place.
The dealer that took the SUV in for service consequently reached out to GM and Cadillac for guidance on the warranty block issue, but more than a week passed without a resolution for the owner.
Now, we have an update on this story. After speaking to the owner, GM Authority has learned that a GM executive called the customer and apologized for the situation. Additionally, the warranty on the owner’s 2023 Cadillac Escalade-V has been reinstated. Critically, the entire episode lasted roughly 10 days from start to finish.
It’s certainly nice to see that GM has addressed the issue, especially when considering the Cadillac Escalade-V’s rather steep price tag. Hopefully no other Cadillac Escalade-V owners have to face similar issues if they too choose to refinance.
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Comments
Well that was mighty white of them.
Hey, they were just protecting the image of their overpriced Suburban.
That’s important.
Does anyone knows what happens to warranty on Hummer EV if I trade it back to Hummer dealer I got it from, surely they wouldn’t cancel it and hurt my trade in value since or where I can get info
Are we just going to ignore the loss of power and service 4wd message?
My first thought as well after I finished reading the article. This is a very expensive vehicle. QC should be A#1.
Even Mercedes has occasional problems with their high-priced units. Moreover, it’s probably a software issue and not mechanical.
There are so many things that may place the vehicle into limp mode and it is not AFM/DFM. A bad oil pressure switch sending low oil pressure will place it in limp mode so the the engine or component doesn’t destroy itself. The article states lost of power (limp) and Service 4WD. My first thought is a differential or transfer case issue.
Wow! GM over-stepped their authority in this case. Is there a legal issue here?
“Bad actors reselling for a large profit” Anyone at GM Authority paid any attention to dealers asking 20k over MSRP for an Ultimate Denali or a Corvette?
Interesting level of hypocrisy going on here. LOL
Exactly! They wanted to charge me $210k for an Escalade-V here in Georgia. No negotiations whatsoever! Ridiculous!
Yeah, tried to buy an Ultimate Denali and the dealer had marked it up 20k above MSRP and would not consider trade ins. Another dealer quoted me a price over the phone and when I got there and he realized my trade was a 2021 fully loaded Denali XL with no debt and the balance would be paid in cash SO he raised the price 10k and recommended I sell my car to Carvana. Makes no sense.
Got irritated so I made the guy write everything up, have his folks inspect and estimate my cars value, and drank several free soft drinks…..LOL After they put all the work into it I told them I CHANGED MY MINE AND THEY NEEDED TO COME OFF THE PRICE 20K. Salesman got pissed and I looked him in the eye and said, “welcome to the way you guys treat customers and walked out. This is my 6th GMC Yukon Denali and will most likely be my last. Not a dealer but it seems to me even selling me the car a retail and taking my trade would have netted them a nice profit but. I guess laziness is defined as waiting for the one person that will give them what they want.
This issue should have been settled in less than a day with the dealer calling GM and informing them that he did not sell it just refinanced it. This is so easy to check out that the owner’s name and address did not change. The customer had to wait a week or more to have his $160,000 plus truck fixed without them giving him a free loaner vehicle. Never treat a customer as your enemy.
What did the problem turn out to be? AFM lifter/camshaft failure???? Let’s hear “the rest of the story”
I’m sure it was electrical of some kind.
Heard and seen a couple with ECM failures early on
GM disabled the Escalade with an over the air update. Take that.
Classic case of biting (in this case, biting it off) the hand that feeds you. It should be nobody’s business what you do with your vehicle once the title transfers to a new owner. I’m sure the FTC would have a lot to say about GM’s tactics here. Hey GM: Want to stop the flipping phenomenon? Get your act together and better manage your supply chain so you can put out as many vehicles as consumers demand. And don’t forget to punish your dealers who are taking advantage of short supplies by marking up vehicles over sticker. I completely understand supply and demand, but when I pay $100k or more for a vehicle, it’s none of your freakin’ business what I do with it the moment I drive it off the lot.
Glad GM stepped up but taking 10 days to get it done is ridicules. I’m sure they had the block done in less than a day. Anyway, they could have at least thrown in free lifetime inspections or maybe a few free oil changes, something! Customer service GM!!!
No doubt is was a software issue on the dropping of a GM finance contract before it was paid off. Someone missed the requirement that only a transfer of title should block the warranty, not dropping the finance contract. 10 days may seem long but trying to turn around an elephant in the bath tub takes time.