Cadillac Escalade-V Owner Gets Warranty Voided After Refinancing Vehicle
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The 2023 Cadillac Escalade-V introduces a new supercharged heartbeat for the iconic luxury nameplate, blessing the full-size SUV with sports-car levels of performance. Naturally, the price of entry is rather steep – in fact, the Cadillac Escalade-V is the most expensive Cadillac currently available. As such, one might expect an exceptional service and ownership experience. Unfortunately, that wasn’t the case for one Cadillac Escalade-V owner who had their warranty voided after refinancing. Here’s the full story.
GM Authority was recently in contact with a customer who purchased a new 2023 Cadillac Escalade-V in September 2022, financing it through GM Financial. A few months later, in January 2023, the customer refinanced the vehicle at a lower interest rate with another institution. No transfer of title took place.
Sometime thereafter, the customer began to have issues with the vehicle, headlined by a “Service 4WD” message on the instrument panel and a related loss of power. After bringing their Cadillac Escalade-V into the dealer to address the issue(s), the customer was informed that some of the vehicle’s components required reprogramming. However, upon taking in the vehicle, the dealer advised the customer that the vehicle had a warranty block on it.
Before going any further, it bears mentioning that the Cadillac Escalade-V is one of several high-demand vehicles that currently carry a time-specific ownership requirement in order to retain the warranty. Like the 2023 Chevy Corvette Z06 and GMC Hummer EV, Cadillac Escalade-V owners must own their vehicle for at least six months before selling it in order to retain the warranty.
GM put this stipulation in place in order to prevent bad actors from quickly reselling the vehicle for a large profit, a practice known as “flipping” the vehicle. However, in the case of the GM Authority reader in this story, no ownership transfer took place, since the model was solely refinanced.
The dealer that took in the reader’s Cadillac Escalade-V has since reached out to GM/Cadillac for guidance. As of this writing, a week has passed without a resolution from either GM or the dealer. The customer tells us they have been chasing the dealer who, in turn, has been chasing GM, but the end result is so far the same. According to the dealer, GM’s system says this particular vehicle’s warranty is blocked due to non-retention.
The situation has to be frustrating, especially considering the $150,000 price tag for the new Cadillac Escalade-V. We’ll post updates to the story as we get them, but in the meantime, subscribe to GM Authority for more Cadillac Escalade news, Cadillac news, GM Financial news, and around-the-clock GM news coverage.
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If you can’t afford it, don’t buy it. Viagra is cheaper for your mid-life crisis.
If he added someone else to the title (spouse or child) or moved it to a company name then ownership changed. Would need more detail to actual know what happened. If he just switched banks this would not happen.
At this level of vehicle, if one needs to finance it, probably shouldn’t be purchasing it.
something does not add up here… end user was trying to be a “smart guy” and got slapped.
This story should be getting more attention than its currently getting, since GM gives lousy warranty work on a $150,000+ vehicle, imagine the lousy service they’ll give you on lesser models,