GM Will Ban Some Resellers From Placing Future Orders

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Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

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, Automotive Editor - August 2, 2022
2023 Chevrolet Corvette Z06

From houses and watches to gaming devices and cars, flippers have turned a lot of industries upside down during the COVID-19 pandemic and semi-conductor chip shortage. Automakers haven’t really done anything about flippers recently or the dealerships that are placing massive markups onto cars. But General Motors is looking to go against the trend with a firm stance on consumers that may be planning to flip high-demand vehicles.

Speaking with The Drive, a GM spokesperson told the outlet that the automaker will bar consumers if they flip an in-demand vehicle within the first year of ownership. The spokesperson said that GM will be “limiting the transferability of certain warranties and barring the seller from placing future sold orders or reservations if the vehicle is resold within the first 12 months of ownership.” Vehicles that will land flippers on the naughty list include the GMC Hummer EV, Cadillac Escalade-V, and Chevrolet Corvette Z06.

As the outlet explains, consumers that purchase one of these vehicles and choose to flip it within a year of owning it won’t be allowed to place any orders for future GM products. Where GM’s policy really goes above and beyond is how it affects second-hand buyers, as the vehicle that’s being flipped won’t come with the same warranty as a new car from the factory. The new policy may seem harsh, but GM believes this is the right thing to do.

“This will help prioritize ownership by our top brand enthusiasts and most loyal customers,” stated the spokesperson.

2022 GMC Hummer EV SUV

GM’s North America President Steve Carlisle shared the new policy with dealers across the country before the end of July. Carlisle also took the time to remind dealers of their contractual requirements and the automaker’s policies on the resale of new vehicles. When GM heard about how shoppers will take hard-to-find vehicles and flip them, Carlisle reached out to dealers to explain how the act hurts the brand and customers.

We applaud GM for taking a stand against flippers, but we don’t think it will work. Flippers aren’t making a few hundred bucks when they flip their car, we’re talking about tens of thousands and sometimes hundreds of thousands for the right vehicle. Auctions sites like Bring a Trailer and eBay have become the prime location for flippers. Recently, a 2022 Chevrolet Corvette C8.R Championship Edition Convertible with a price of $105,085 (with destination) sold for $142,000. On eBay, a 2022 Corvette C8.R Championship Edition 3LT Coupe is listed for $159,999.

Consumers lucky enough to purchase one of GM’s in-demand vehicles will probably flip the vehicle at an incredibly high price, pocket the money, and then purchase a model when things die down on the used market or a new one through a friend. Despite GM’s attempts, we’re sure we’ll see quite a few Z06 models listed for sale shortly after they begin to be delivered.

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, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

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